Technology & AI Growth Fund of Funds

Investment Overview

This fund of funds invests across a curated selection of specialist technology-focused investment funds, providing diversified exposure to the global technology sector through both publicly listed equities on major US exchanges (NASDAQ and NYSE) and pre-IPO opportunities in high-growth private technology companies. The fund targets a 15–20% IRR over its five-year life, reflecting the technology sector's structural growth trajectory driven by artificial intelligence, cloud computing, and digital transformation.

The fund of funds structure provides investors with access to specialist technology fund managers — many of whom maintain minimum investment thresholds of $500,000–$5,000,000 — through a single vehicle with a USD 100,000 minimum.

The Technology Investment Thesis

The technology sector has been the dominant driver of global equity market returns over the past two decades. The NASDAQ 100, which tracks the largest non-financial companies on the NASDAQ exchange (heavily weighted to technology), delivered annualised returns of approximately 16% per annum over the decade to 2024, materially outperforming the broader S&P 500 (approximately 11% p.a.) and global developed market indices over the same period.

Looking forward, the investment thesis for technology rests on several structural drivers that the fund manager's research identifies as durable through the mid-2030s:

Artificial intelligence: The current wave of AI — large language models, multimodal AI, AI agents, and autonomous systems — represents the most significant productivity-enabling technology since the internet. Companies deploying AI across their operations are demonstrating measurable efficiency gains, and the companies building and enabling AI (semiconductors, cloud infrastructure, model developers, application layer companies) are in the early stages of a multi-year capital investment and revenue growth cycle.

Cloud infrastructure: Enterprise migration from on-premise infrastructure to cloud platforms is still incomplete globally. Cloud penetration of enterprise IT spend was estimated at approximately 35–40% as of 2025, suggesting continued multi-year growth for hyperscale cloud providers and the ecosystem of software companies built on cloud infrastructure.

Enterprise software: The SaaS (software as a service) model has fundamentally changed enterprise software economics — recurring subscription revenue, high gross margins, and network effects create businesses with unusual durability and compounding characteristics. AI integration into enterprise software is creating a new product and pricing upgrade cycle.

Semiconductor cycle: AI training and inference requires significant compute, driving sustained demand for advanced semiconductor capacity. The global semiconductor industry is in a structural capex expansion phase, with new fabrication facilities representing multi-decade investments in supply capacity.

Fund of Funds Structure

The fund allocates across 8–12 underlying specialist funds, selected by the investment manager through a rigorous due diligence process. The allocation is split approximately:

Listed technology equity funds (50–60%): UCITS and regulated funds focusing on global technology equities, providing daily-priced exposure to large and mid-cap technology companies listed on US and global exchanges. This sleeve provides liquidity, market exposure, and portfolio management by specialist technology investors.

Growth equity and late-stage private funds (25–35%): Funds investing in private technology companies at Series C through pre-IPO stage. These companies have established revenue and often profitability, but have not yet accessed public markets. This segment captures the transition from private to public — a period that has historically generated strong returns for early institutional investors.

Venture capital and early-stage funds (10–15%): A smaller allocation to early-stage specialist funds in areas where the investment manager has high conviction — AI applications, enterprise security, and climate technology software. The early-stage allocation carries the highest risk within the portfolio but also the highest potential upside.

Geographic Focus

The fund's underlying holdings are predominantly US-based (reflecting the concentration of global technology company value in the US market), with meaningful secondary exposure to Israel (a global centre for enterprise security and AI R&D), India (a rapidly growing technology ecosystem), and selected European technology companies in enterprise software and deep tech.

Risk Factors

Technology sector concentration: This fund invests entirely in the technology sector. Technology equities have historically experienced significant volatility and drawdowns — the NASDAQ fell approximately 77% in 2000–2002 and approximately 33% in 2022. A sustained technology sector downturn could cause material losses.

Valuation risk: Technology equities, and particularly pre-IPO technology companies, are valued on growth expectations. If interest rates remain elevated or technology growth disappoints relative to current expectations, valuations may compress materially.

Pre-IPO and liquidity risk: The growth equity and venture capital allocations are illiquid. Companies may delay or cancel IPOs; secondary sales of private company stakes may be difficult to execute at fair prices. The five-year fund life may prove insufficient for all private holdings to reach a liquidity event.

Fund of funds fee structure: Investors bear both the fees of this fund and the fees of the underlying funds. The total expense ratio, inclusive of all layers, will be higher than a direct single-fund investment. The investment manager believes the access premium and diversification benefit justify this structure.

Currency risk: The fund is USD-denominated. Non-USD investors bear exchange rate risk.

How to Enquire

Contact our investment team for the full fund information memorandum, underlying fund selection methodology, manager profiles, current portfolio construction, and performance track record of the fund of funds manager. This opportunity is available to sophisticated investors only. Minimum investment USD 100,000.

Important: Target IRR of 15–20% is the fund manager's projection based on historical technology sector performance and is not guaranteed. Technology sector investments can experience severe losses. Pre-IPO investments carry substantial illiquidity and valuation risk. Past performance of technology indices is not a guide to future returns. Independent financial advice should be sought before investing.