Funds-of-Funds
Empowering Data-Driven Decision-Making
Bella supports funds-of-funds managers with software tools for portfolio construction, dedicated pacing models, robust benchmarking frameworks, and custom analyses to optimize performance across portfolios and programs.
Challenges Facing Funds-of-Funds
Funds-of-funds managers must balance complex multi-layered portfolios, maintain liquidity, and deliver competitive net returns while navigating market volatility and evolving investor demands.
- Optimizing diversification by balancing allocations across asset classes, geographies, sectors, and manager styles.
- Coordinating capital calls and distributions from multiple underlying funds to manage liquidity.
- Conducting manager benchmarking and attribution analyses to inform re-up decisions.
- Preserving net returns despite layered management fees.
- Adapting to market change by adjusting allocations and pacing in response to economic shifts.
How We Support Funds-of-Funds
We help fund-of-fund managers design diversified portfolios, optimize capital pacing, and strengthen manager oversight to achieve consistent, competitive performance. Our advisory services blend data-driven modeling, market benchmarking, and strategic insight to ensure portfolios are resilient, efficient, and aligned with investor objectives.
Portfolio Construction Strategy
Design balanced, multi-layered portfolios that diversify across asset classes, geographies, sectors, and investment styles to reduce risk and capture opportunity.
Pacing & Liquidity Modeling
Develop tailored models that forecast capital calls and distributions, ensuring liquidity is maintained without sacrificing investment performance.
Manager Selection & Oversight
Strengthen evaluation processes and ongoing monitoring to ensure underlying managers deliver consistent, risk-adjusted returns.
Performance Benchmarking
Provide comparative analysis against peer groups and market indices to evaluate results and refine strategy.
Fee Structure Optimization
Assess and restructure fee arrangements to minimize the impact of layered costs on net performance.
Past Work
See our Expertise in Action
Answers to Frequently Asked Questions
Common Questions About Consulting for Funds-of-Funds
Fund-of-funds managers determine allocations by balancing diversification goals, return targets, and risk tolerance. They use portfolio construction models to optimize exposure across asset classes, geographies, sectors, and vintage years, while aligning with investor mandates.
Pacing models forecast capital calls and distributions from underlying funds, helping managers maintain liquidity without missing investment opportunities. Accurate pacing reduces cash drag, avoids over-commitment, and supports smoother cash flow management.
The most effective approach combines rigorous upfront due diligence with ongoing performance monitoring. This includes reviewing track records, assessing investment processes, tracking key metrics, and conducting regular check-ins with underlying managers.
Fund-of-funds managers benchmark performance by comparing results against relevant peer groups, market indices, and custom benchmarks that reflect their specific portfolio mix. This ensures they can measure value creation relative to both market conditions and investor expectations.
Fee structures can be optimized by negotiating lower fees with underlying managers, reducing performance fee tiers, or restructuring agreements. Careful fee management can meaningfully improve net returns, especially when compounded over multiple investment cycles.
Who We Help
Expertise Translated into Real Results
Industry Groups
Helping Build Private Market Understanding Through Custom Thought Leadership
How We Help
Customized Private Market Solutions
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At Bella Private Markets, we are dedicated to providing world-class insights and analyses to help you navigate the complexities of the private market landscape. Our expert team is here to assist you through our consulting services, impactful research, and tailored training programs to help empower institutional decision-making.