Approximation fixpoint theory (AFT) is an algebraic framework designed to study the semantics of non-monotonic logics. Despite its success, AFT is not readily applicable to higher-order definitions. To solve such an issue, we devise a formal mathematical framework employing concepts drawn from category theory. In particular, we make use of the notion of Cartesian closed category to inductively construct higher-order approximation spaces while preserving the structures necessary for the correct application of AFT. We show that this novel theoretical approach extends standard AFT to a higher-order environment and generalizes the AFT setting of Charalambidis et al. (2018).