LIVE STREAM
From Europe to the US: What It Really Takes to Raise Capital Across the Atlantic
Published date: 9 April 2025 | 5-Min Read
If you’re a European fund manager approaching Fund III or IV, chances are you’ve considered tapping U.S. LPs. As the panelists in EUVC ‘s recent roundtable made clear, it’s no longer just a good idea…..it’s quickly becoming a necessity. Raising capital from U.S. LPs is no longer optional for European GPs—it’s fast becoming essential.
In this live conversation, Matias Collan 🚀 and Felix von der Planitz of ACE Alternatives joined David Rose of US Expansion Partnersand Andreas Munk Holm to unpack the practical, legal, and strategic realities of U.S. fundraising for European GPs.
From tax transparency and fund structuring to cultural nuances and LP expectations, no topic was off-limits.
Key Insights + Soundbites You Don’t Want to Miss:
U.S. LPs bring more than capital; they’re selective, and often operating on a different tempo than their European counterparts.
If your pitch is a 3x fund, U.S. LPs might ask why they should even bother. – Matias
Legal missteps aren’t just costly, they can be catastrophic.
You hop off a plane in New York, and someone from the SEC is waiting? That’s not a good day. – Matias
Transparency and timing are everything.
U.S. LPs file in April. That means you need your audit done in Q1. It’s a massive operational challenge. – Felix
U.S. fundraising is a long game.
You likely won’t place your current fund. But maybe the next. Or the one after. The relationships start today. – David
Portfolio strategy isn’t just about numbers…it’s a narrative. And in the U.S., that narrative plays differently.
In the U.S., you see more funds that go full power law, big portfolios, go for the outliers, and move fast. In Europe, we still tend to focus on making sure every investment returns something…not just chasing the unicorn. That’s not necessarily worse, but it is a different narrative. And when you’re raising in the U.S., narrative matters. – Andreas
Why Go West?
Felix and Matias emphasize that U.S. allocators, especially pension funds and endowments, are generally more sophisticated and more willing to cut sizable checks. But that access comes with a steep operational and legal learning curve.
If you want to preserve capital gains treatment for your U.S. LPs, you must nail the structure. Transparency is non-negotiable.
Structuring for U.S. Investors: Don’t DIY
Whether you’re onboarding a few angels or chasing a $10M LP ticket, structure matters. Some of the panel’s tactical highlights:
- Use transparent vehicles like SCS/SCSP in Luxembourg.
- File ‘check-the-box’ elections to ensure U.S. tax pass-through status.
- Expect side letters and try to harmonize them.
- Avoid UBTI traps for tax-exempt investors.
- U.S. LPs often expect Delaware entities because it’s familiar and trusted.
Culture Shock: Different Mindsets, Different Metrics
David Rose offers a blunt yet insightful lens into different cultural expectations:
A European CFO wakes up thinking: how do I preserve capital? A U.S. CFO wakes up thinking: how do I grow enterprise value….today?
It’s not just about spreadsheets and tax codes…it’s about ambition, pace, and narrative. A 3x target may play well in Berlin, but won’t move the needle in Boston.
The Process: Fast, Data-Driven, Unforgiving
- Be concise.
- Be data-rich.
- Be ready for consultants and gatekeepers.
- Expect 3–18 month cycles.
- Start the relationship before you need the money.
Don’t wait for the perfect fund to start building relationships. It’s a multi-fund journey. – Matias
Final Word:
Your LPA doesn’t come with a clause that lets you skip delivering returns just because of political headwinds. Stay focused on your mission. – David
About ACE Alternatives
ACE Alternatives (“ACE”) is a tech-driven service provider for Investment Fund Manages in the Alternative Assets space. ACE’s vision is to redefine fund management by demystifying complexities and promoting transparency.
Asset classes include Venture Capital, Private Equity, Private Debt, Fund of Funds, Real Estate, and more. With a proprietary tech platform and extensive industry experience of the team, ACE offers 360 degree tailored solutions for fund administration, tax and accounting, compliance and regulatory, ESG needs. The fintech was founded in Berlin in 2021 and has since established itself as one of the fastest growing alternative investment fund service providers in Europe. ACE is currently working with over 45 funds and steadily growing its customer base.
