A feeder fund pools investors' money and invests it all into a larger master fund, often so investors with different tax or legal needs can share one portfolio.
What the film says
In private markets, investors on opposite sides of the world can own the exact same deals. They get there through feeder funds. Say one investor is in Ohio. Another is in Tokyo. Different tax positions. Different legal needs. So a U.S. feeder collects three hundred million. A Cayman feeder collects two hundred. Both pour all of it into one master fund. Five hundred million, one portfolio. So why do investors care? One fund can hold investors from many countries, without separate portfolios. Different doors. Same building.
In the glossary: Feeder fund
A simple example with round numbers, not advice. Terms vary by fund.
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