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

  • 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)

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

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

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

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

  • When defining the capital call round:

    1. Investment Amount: Amount invested by your fund into the portfolio fund

    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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