Yes, it is possible to set up a Special Purpose Vehicle (SPV) or feeder fund to invest in an institutional fund. An SPV or feeder fund is a separate legal entity that is typically used to pool capital from multiple investors in order to invest in a specific asset or set of assets, such as an institutional fund.
An institutional fund is a type of investment fund that is typically targeted at large, institutional investors such as pension funds, endowments, and other large financial institutions. An institutional fund is usually open to investors who meet certain minimum investment requirements and often have lower fees and expenses than other types of investment funds.
When an SPV or feeder fund is set up to invest in an institutional fund, it acts as a vehicle for individual or retail investors to invest in that fund and share in its returns. The investors in the SPV or feeder fund become limited partners in the SPV and the institutional fund, and have no direct involvement in the management or control of the institutional fund.
However, it is important to note that the institutional fund may have certain requirements for its investors, such as minimum investment amounts and/or accreditation requirements, and those requirements must be met by the SPV or feeder fund investors.