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It’s true that FoFs provide LPs a way to purchase VC funds in a basket, but by design these are comparatively narrow actively-managed investment funds rather than broad-based passive vehicles. fund or marginally profitable fund doesn’t generate any carry for the GPs that are investing it.
There are different flavors of family investment offices today, some are “single family” offices which invest on behalf of one uber wealthy family and their descendants whereas others are “multi-family” that might aggregate the wealth of a number of rather wealthy but not uber wealthy families. Insurance Companies.
There are different flavors of family investment offices today, some are “single family” offices which invest on behalf of one uber wealthy family and their descendants whereas others are “multi-family” that might aggregate the wealth of a number of rather wealthy but not uber wealthy families. Insurance Companies.
Firstly, “fund size” can be misleading as some firms prefer to raise a large aggregate amount split between several concurrent funds. A cynical observer might argue this is why some firms raise many concurrent small funds… then they have both large management fee streams and high volatility on each given carriedinterest pool.
For those who aren’t familiar, Mobius was a VC fund with offices in Silicon Valley and Boulder CO and at it’s peak Mobius had $2B+ under management. a VC fund’s entire portfolio in aggregate, net of management fees and carriedinterest) a good return from an LP’s perspective would be 2.5-3.0x
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