Fund of Funds, WTF? Why Smart Investors Stack Deals Like Russian Dolls

Let’s cut the crap: You want to build wealth, not babysit tenants, manage a retail strip mall in Nowheresville, or deal with 2 AM calls about broken toilets. But you do want to invest, diversify, and stop letting your cash rot in a savings account that pays less than your aunt’s birthday card.

Enter: the Fund of Funds.

Yes, it sounds like some Ponzi-adjacent finance buzzword made up by guys who wear loafers without socks. But stick with me; this little-known strategy is one of the smartest ways to grow your money without owning or operating jack shit..

So let’s break it down, plain and simple.

So… WTF Is a Fund of Funds?

A Fund of Funds (FoF) is exactly what it sounds like: a fund that invests in other funds.

Instead of putting your money directly into one asset…like a self-storage deal, an apartment complex, or a venture fund…you invest in a FoF that spreads your money across multiple deals, often curated by a seasoned operator who knows how to separate the filet mignon from the bologna.

Think of it like this:
➡️ A regular fund is a solid investment.
➡️ A Fund of Funds? That’s the investment charcuterie board.

You’re not just betting on one cheese; you’re tasting the whole damn tray.

Why Business Owners Love This Strategy

Here’s the real tea: entrepreneurs are already running a business. That’s your main hustle. But your wealth-building game? That needs to be your side hustle.

Here’s why a Fund of Funds makes sense for business owners:

🧠 Diversification Without the Headache

No need to analyze every deal or become a real estate expert. You're outsourcing that brain damage to someone else, while still reaping the benefits.

🕰️ Time Is Money (And You Ain’t Got Either to Waste)

Operating a business is a full-time job. Adding landlord, syndicator, or underwriter to your title? Hell no. A Fund of Funds lets you invest passively without becoming an operator.

💸 Smaller Checks, Bigger Exposure

Instead of needing $250K to get into a single fund, some FoFs let you in for $50K (or even less) while spreading that exposure across dozens of assets. Talk about leverage.

🛡️ Built-In Risk Buffer

One deal tanks? Sucks, but you're still in 14 others. It's the adult version of not putting all your Easter eggs in one sketchy basket.

But Is It Safe?

Look, no investment is totally safe. This isn’t a savings account or a mattress full of singles.

But if you’re vetting the fund manager, asking the right questions (Hunter Thompson drops a good one: “Would I bet my career on this person?”), and understanding the asset classes they invest in—this can be a killer long-term strategy.

Speaking of Hunter…

If You’re Curious, Start Here

In Episode 215 of The Liquid Lunch Project, the guys sit down with capital-raising wizard Hunter Thompson of RaisingCapital.com, and the dude delivers. and the dude delivers. He drops gems on why now might be the best buying window in a generation, and exactly how funds (and Fund of Funds) are being used to scoop up assets while everyone else is crying in the corner about interest rates.

Hunter breaks down the Fund of Funds model in a way that even your burnt-out bookkeeper could understand. Do yourself a favor and check it out.

Bottom Line: You Don’t Need to Own the Whole Damn Pie

Most business owners think they need to buy an entire property or launch their own fund to “get in the game.” False. You can let someone else do the cooking while you still eat like a king.

And that’s the genius of a Fund of Funds.

Low lift. High potential. No broken toilets.

Ready to build wealth without blowing up your calendar?

Start learning. Start asking smart questions.

And maybe…just maybe…let your money actually work for you for once.

👉 Want help figuring out where a Fund of Funds (or any other wealth strategy) fits into your bigger picture?

Book a quick call with a Credit Banc advisor and let’s map it out.