# Creating a Fund of Funds Allocation

While the Sector Profile and Allocations sections of the Construction Wizard are primarily meant for Direct Investments, they can be easily customized into a Fund of Funds investment profile.

Tactyc provides a pre-built **Fund of Funds Sector Profile** that can be quickly customized to create a **Fund of Funds Allocation.**

### **Setting up the Fund of Funds Sector Profile**

* Under **Sector Profiles**, create a new profile using the **Add Another Profile** option
* Select the **Fund of Funds Investment** from **Tactyc Datasets**

<figure><img src="/files/OMmPUN2w61OHJJ6H4yvy" alt=""><figcaption><p><br></p></figcaption></figure>

* The Fund of Funds profile creates a standard **$100m fund**, with a **2% GP commit** and a **3x return**. You can change the Round Size, Valuation and Exit Valuation parameters to customize this profile for a different return. For e.g. to create a 4x return profile, you would increase the exit valuation to $400mm (4 x $100mm valuation)

<figure><img src="/files/mZG6P7IqvU4yTiDNLOFw" alt=""><figcaption></figcaption></figure>

### Setting up the Fund of Funds Allocation

* Under **Allocations** create a new allocation (for e.g. a "Fund of Funds" allocation)
* Under **Linked Sector Profile** connect this new allocation to the **Fund of Funds** sector profile defined above
* Under **Initial Check Size** enter the expected investment in each fund

<figure><img src="/files/C3ID2IKhpIhHtn8R6g9f" alt=""><figcaption></figcaption></figure>

* Tactyc should then automatically calculate the number of fund investments based on the amount of capital allocated to this allocation.

<figure><img src="/files/pqctCQLun4n42p31o6YV" alt=""><figcaption></figcaption></figure>

## Adding an Actual Investment with the Fund of Funds profile

* Once a Fund of Funds sector profile has been defined, you can then add a new investment using this profile, just like you would for a Direct Investment

<figure><img src="/files/dGeewlY5V3Sf4dwSU50J" alt="" width="375"><figcaption></figcaption></figure>

* This investment will be created with a round called **Capital Call** and you can specify the amount invested as part of the capital call

<figure><img src="/files/vL0a9bXaHDFoy9ZCnZEE" alt="" width="563"><figcaption></figcaption></figure>

* When defining the capital call round:
  1. **Investment Amount:** Amount invested by your fund into the portfolio fund&#x20;
  2. **Round Size:** Amount called from all LPs in this capital call round
  3. **Pre-Money Valuation:** Cumulative amount raised from all partners prior to this round. Please set this to $0.01 for the first round, or the value of the GP commit if you know that.
* Future Capital Calls then also be added by added a new **Capital Call** round


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