Working at Fund of Funds, Hybrid Funds, and Secondary Funds

Fund of funds, hybrid funds, and secondary funds are a subsector within private equity. While these are similar in many ways to traditional PE funds, there are also key differences. Unlike traditional PE funds, pure private equity fund of funds, which are also called multi-manager funds, do not invest directly into operating companies, but rather, they are pooled vehicles that invest in a selection of other PE funds. Investment professionals at hybrid funds and secondary funds concentrate more on company-level valuation than would professionals at pure fund of funds. However, the analysis is still not as detailed as that done by traditional private equity funds. Despite, the differences, securing a position at one of these funds is still a quality route to take and can set one on a path to a unique and fulfilling career in private equity.