What is a master-feeder (parent-child) fund structure?

It is a structure in which money from multiple feeder (child) funds created by the same asset manager is pooled into one master (parent) fund and managed together, with the aim of lowering transaction costs through economies of scale.

Only the feeder funds may invest in the master fund, and the feeder funds may not invest in any fund other than that master fund. The feeder funds' own management is limited to holding enough liquidity to meet redemptions.