# 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**

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* 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)

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### 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

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

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## 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

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

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* 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