How Do Fund of Funds Work? (Explained)

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  • Опубліковано 29 жов 2024

КОМЕНТАРІ • 29

  • @alencelic
    @alencelic 4 роки тому +3

    I am curious how do you keep track of all, how much profit is going to each LP. If you have 10k in fund and 2 investors, and you buy $2000 of Apple shares, okay, each get $1000 worth of shares or 10% of portfolio. But a month later you get 2 new investors with new 10k and you have now $8k leftover from first 2 shares plus 10k new, total 18k. now you go and buy 1800 shares of apple again and that is divided into portfolio stake again. I already lost track who gets how much if a year after we sell all Apple shares for 20% profit. not to mention waterfall percentage, geez!
    Is there a software that does that? What are u using for calculations?

    • @bridger_pennington
      @bridger_pennington  3 роки тому +1

      Yes, it can get a little confusing especially inside of a hedge/trading fund. There are softwares that keep track of it. Typically you'll have dates (like every quarter) that investors can move in and out. So you only have to calculate it 4 times a year.

    • @toroblanco800
      @toroblanco800 3 роки тому

      There are tons of complexities. These two talking heads have no idea what they are talking about.

    • @georgiewhite8124
      @georgiewhite8124 3 роки тому +5

      @@toroblanco800 I disagree. I work for a VC firm in the UK and Bridger makes a lot of sense!

  • @jayt7013
    @jayt7013 4 роки тому +2

    Great info and I appreciate the break down but I don’t think the people watching your videos on UA-cam have millions of dollars to invest. What do you recommend for someone who has a fund with say $100k or less?

    • @lincolnarchibald9042
      @lincolnarchibald9042 3 роки тому

      You would be surprised! A lot of the individuals in our program found us via UA-cam... but It's all about getting started with the first deal and leveraging other peoples money

    • @nomerompanlaspelotas5812
      @nomerompanlaspelotas5812 3 роки тому

      @@lincolnarchibald9042 this fof structure with the 2/20 formula is thought for hedge funds? Because if I have a fof for index funds and investment funds like fidelity or vanguard they charge under 1%.

  • @the.kyledavid
    @the.kyledavid Рік тому

    Does it make it harder to raise capital if you’re spreading into different assets?

  • @caine-chow
    @caine-chow 2 роки тому

    Im into real estate.. Would you recommend opening a FOF if we have less than $1m and invest with other syndicators? Or open a real estate fund where we are the ones operating the deal hands on? Or is it up to the individual in your perspective?

  • @mattanlurie4362
    @mattanlurie4362 2 роки тому

    Inaccurate. No FOF chargest 2+20%. They typically charge 2+5%, while it is a second layer of fees, it's no where near 4/40 all in.

  • @jayfeldman3755
    @jayfeldman3755 2 роки тому

    @bridgerpennington I'm confused. If the VC firm is taking 2/20 (or no fee but they have a 30% carry) What is the typical FoF taking? an additional 10% carry? please explain, thanks!

  • @DanielSRosehill
    @DanielSRosehill 2 роки тому

    Appreciate the explanation - thanks!

  • @SpaceSuits2020
    @SpaceSuits2020 3 роки тому

    Great video ✌🏻That was very helpful to understand the structure

  • @ahmada9816
    @ahmada9816 2 роки тому +1

    No link for the video that's mentioned in the beginning, could you link me please

    • @mukeshkumar-tg7hf
      @mukeshkumar-tg7hf 2 роки тому +1

      Just type private equity structure, you will find it

  • @Suresh-lj1qw
    @Suresh-lj1qw 3 роки тому

    sbi is launching new fof in march 1st week

  • @Tatiana-rz6nk
    @Tatiana-rz6nk 2 роки тому

    Can you please explain co-invests and blockers as opposed to funds in private equity

  • @lornatenedero3326
    @lornatenedero3326 3 роки тому

    I need help coz here pinas lockdown again

  • @nevarezfamily9994
    @nevarezfamily9994 2 роки тому

    WI wonder what Bridger saidAfter grabbing TVs that he had to edit it and do it again. 🤣🤣

  • @PepeTostado
    @PepeTostado 3 роки тому

    What are the best books to learn everything about funds?

    • @iRaviShekharSingh
      @iRaviShekharSingh 3 роки тому

      Have you got the answer...from any other sources ??

    • @mastermindrational1907
      @mastermindrational1907 Рік тому

      I was wondering this as well, if anyone has great books on funds they recommend, please share

  • @michigan_616
    @michigan_616 3 роки тому

    Do you need a license to charge the management fee?

  • @doughayden
    @doughayden Рік тому

    Personally I'd never invest in anything like this, to much overhead for a manager that doesn't know or trust what they are doing.

  • @waseemsattar1604
    @waseemsattar1604 Рік тому

    Such such pricks make this look so nice but does anyone know what happens behind the scenes? How do they raise the extra 25 he’s referring to? Smh

  • @toroblanco800
    @toroblanco800 3 роки тому +2

    So much BS. Who is going to give millions? You need lawyers, accountants, fiance guys. You have to deal with withdrawals unbelievable amount of compliance regulation. Need to do auditing. Tons of shit and tons of risk.

    • @bridger_pennington
      @bridger_pennington  3 роки тому +9

      Lot of words coming from a guy who's never run his own fund.

    • @georgiewhite8124
      @georgiewhite8124 3 роки тому +3

      You're obviously not a fund manager or have ever been one. 😂😂