with Dr. Christian Hillebrand, Founding Partner at Orbit
EUVC Academy · 1h 16m · Fund Strategy, Legal & Structuring
Venture capital fund structuring is the legal, economic and operational backbone of any VC firm. Getting it right determines whether a fund is investable, compliant and able to deliver returns to both GPs and LPs.
This session breaks down how VC funds are structured in practice, from GP/LP structures and fund lifecycles to fees, carry and capital flows. It covers key decisions around jurisdiction, tax and investor base, as well as regulatory constraints and fundraising mechanics.
The focus is on market-standard approaches and the practical trade-offs emerging managers must navigate early on to ensure longevity.
Key Learning Points
Jurisdiction, tax and investor fit
Fund domicile should match GP location, LP base and fund size
Tax neutrality at fund level is essential for investors
Luxembourg is standard for cross-border fundraising but expensive
Regulation and fundraising execution
Fund management is a regulated activity requiring a licence
Sub-threshold AIFM licences suit emerging European VC managers
Cross-border marketing depends on licence type and national private placement regimes
Reverse solicitation is limited and cannot replace compliant marketing
Public LPs and operational burden
Public LPs provide capital and strong market signalling
Their processes tend to be lengthy with extensive commercial and legal diligence
Ongoing reporting includes regulatory filings, financials and LP reporting
Lean, standard structures are typically better for emerging managers
