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Fund Economics

What is a good fund I size for a fund of funds? Does the same 5-10M guidance apply as a standard fund?

Asked by: Mohammed Kamal
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0
Oct 24, 2024
What is a good fund I size for a fund of funds?  Does the same $5-10M guidance apply as a standard fund?
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Mike Suprovici
Accepted Answer
Oct 24, 2024
Fund targets should be set based on the GPs ability raise capital, rather then by other external targets. The minimum fund size for a Delaware fund is $2.5m to justify the operational costs. In other domiciles, it's considerably higher due to the operational cost.
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Mike Suprovici
Accepted Answer
Oct 24, 2024
Fund targets should be set based on the GPs ability raise capital, rather then by other external targets. The minimum fund size for a Delaware fund is $2.5m to justify the operational costs. In other domiciles, it's considerably higher due to the operational cost.
A fund of funds may also have higher operational costs than a typical venture capital fund, due to increased complexity with accounting, reporting, taxes, etc. 
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Haw Kuo
Oct 24, 2024 4:43pm
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