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Direct Funds vs Fund-of-Funds vs Secondaries Calculator

Compare fees, returns, cash needs, diversification and workload across the three routes. Choose a quick mix below, or build your own.

What this helps you compare“What happens if I use a mix of direct funds, fund of funds and secondaries instead of choosing just one?”

What this mix could look like

We start with your return assumptions, then take out fees and carry. When cash is called and paid back determines the IRR.

Estimated net value — Year 12
1.94x · $194m

Estimated cash-flow IRR: approximately 17.4%.

Fees and carry$46m0.46x of commitments
Managers to oversee7Across direct, FoF and secondary routes
Time to target4 yearsTo reach 80% paid-in exposure
Largest cash draw$50.9mPeak negative cumulative net cash flow

Cash calls and distributions

See when money is likely to be called and when it may come back. Coloured bars show each route; the black line shows the total for that year.

First money back: 2027

Running cash position

This shows your running cash position over time. Secondaries may return money earlier, while fund of funds can take longer to pay out.

Break-even: 2032
Total portfolioDirect fundsFund of fundsSecondaries
First money back2027
Break-even2032
Last money back2037

How much has been called

This shows how much of your planned commitment has been called. It is not the fair value of the portfolio.

80% called in Y4
Direct fundsFund of fundsSecondariesTarget

Before and after fees

Estimated IRR: 17.4%
Before fees and carryAfter fees and carry
Managers to oversee7Direct + FoF + secondary managers
Underlying fund exposures70Illustrative; holdings may overlap
DiversificationBroadBased on underlying-fund breadth
Admin workModerate17 weighted workload points

How to read this

Direct funds give you more control, but usually mean more manager selection and admin. Fund of funds can spread your exposure through one relationship, but add another layer of fees and may take longer to return cash. Secondaries can put money to work and return it sooner, but may have a different return profile. This is a simple scenario tool, not a prediction of which route will win.

Frequently asked questions

Can I use all three routes?

Yes. The sliders always add up to 100%, so you can choose any mix of direct funds, fund of funds and secondaries.

Why do fund of funds cost more?

The model includes fees and carry at the underlying fund level, then an extra fund-of-funds layer. Actual terms vary by vehicle.

Why can secondaries improve cash flow?

Secondaries may buy more mature assets and return money earlier. That can help offset calls from newer primary funds.

What does paid-in exposure mean?

It is the share of your planned commitment that has been called. It is not NAV or a fair-value estimate.

Are the underlying funds all different?

Not always. Different managers can hold the same funds or companies. This is a simple breadth estimate, not a full look-through analysis.

Where do the return assumptions come from?

Conservative, Base and Optimistic start with different gross multiples for each route. You can inspect or change them under Adjust assumptions. Fees and carry reduce those values, and the cash-flow timing determines the IRR. These are scenarios, not forecasts.

For education only—not investment, legal, accounting or tax advice. Fund terms, timing, access, overlap and liquidity can vary a lot. Check fund documents and speak with your advisers before making decisions.