In a global economy defined by intertwined supply chains and cross-border capital flows, economic security cannot rely solely on national investment. Fund-of-funds vehicles can help governments bolster resilience and advance strategic objectives while protecting sensitive technologies and limiting adversarial influence.
BOSTON—Funds of funds (FoF) are increasingly used to shape how governments practice economic statecraft. When designed well, they pool capital to invest in venture funds rather than directly in individual companies or securities, strengthening innovation ecosystems while steering investment toward strategically important markets, capabilities, and technologies. But when poorly designed—as they often have been—these structures reproduce the all-too-familiar failures of politically captured investment programs.
BOSTON—Funds of funds (FoF) are increasingly used to shape how governments practice economic statecraft. When designed well, they pool capital to invest in venture funds rather than directly in individual companies or securities, strengthening innovation ecosystems while steering investment toward strategically important markets, capabilities, and technologies. But when poorly designed—as they often have been—these structures reproduce the all-too-familiar failures of politically captured investment programs.