1. What is a private equity parent fund?

private equity fund of funds (PE-FOF) is a private equity fund with private equity

fund as its main investment object.

There are three main businesses of private equity parent funds: primary investment, secondary investment and direct investment.

second, what are the advantages of private equity parent funds?

first, spread the risks. Generally speaking, FOF will diversify the raised funds into multiple underlying funds, which avoids the risk of putting the risk on a fund manager in a single fund investment. At the same time, the number of companies invested by these underlying funds often exceeds hundreds, which makes FOF have the ability to obtain diversity in many fields, such as investment stage, time span, region, industry and investment style. By investing in FOF, investors can effectively achieve risk diversification.

secondly, professional management. For investors, even if they have knowledge of one aspect of fund investment, they may lose investment opportunities because of lack of understanding of other aspects. FOF usually has comprehensive knowledge, contacts and resources in fund investment to realize investment in these fields. When investing in funds, FOF selects the underlying funds in a professional way, which is more likely to make correct investment decisions than other investors.

thirdly, it has good investment opportunities. Investors want to invest in the underlying fund with excellent performance. However, for ordinary investors, it is difficult to obtain investment opportunities of outstanding performance target funds. FOF is a professional investor in funds, and usually has a good long-term relationship with the underlying funds and has the opportunity to invest in these excellent underlying funds. Investors can get the opportunity to invest in excellent underlying funds by investing in FOF.