I’ve read that a benefit of using a FoF structure over an multi-strategy fund structure is that a FoF structure can offer you access to closed end funds. I’m struggling to understand how this would practically work. My understanding of a closed end fund is that once funds have been raised, no further capital can be raised after fund closing. So how does a FoF structure get you this access and why can’t a multi-strategy fund get this access?
They already have money in the closed fund; they got in before it closed.
When you invest in the FoF, you can get access to all of the funds in which they are already invested.