A simple example:
CL-USER> (defun make-apply-twice (fun)
"return a new function that applies twice the function`fun' to its argument"
(lambda (x)
(funcall fun (funcall fun x))))
MAKE-APPLY-TWICE
CL-USER> (funcall (make-apply-twice #'1+) 3)
5
CL-USER> (let ((pow4 (make-apply-twice (lambda (x) (* x x)))))
(funcall pow4 3))
81
The classical example of function composition: (f ∘ g ∘ h)(x) = f (g (h (x)):
CL-USER> (defun compose (&rest funs)
"return a new function obtained by the functional compositions of the parameters"
(if (null funs)
#'identity
(let ((rest-funs (apply #'compose (rest funs))))
(lambda (x) (funcall (first funs) (funcall rest-funs x))))))
COMPOSE
CL-USER> (defun square (x) (* x x))
SQUARE
CL-USER> (funcall (compose #'square #'1+ #'square) 3)
100 ;; => equivalent to (square (1+ (square 3)))