Publication
Investment funds in the US: what they are and why they attract international business
In the modern world, investments have become a key source of growth for both tech startups and large corporations. Investment funds, especially those registered in the United States, remain one of the most effective capital raising tools.
What is an investment fund?
An investment fund is a structure that accumulates investor funds and invests them in various assets: stocks, bonds, real estate, startups, crypto projects, and other instruments. The fund is managed by professional managers whose goal is to ensure asset growth and returns for participants.
Why the United States?
The United States remains the global leader in investment funds for several reasons:
- Legal Framework: American law closely regulates fund activities and ensures transparency for investors.
- Investor Confidence: Being a "US jurisdiction" increases the fund's attractiveness to local investors and international partners.
- Access to Capital: The world's largest venture capital and institutional investors prefer to invest in funds registered in the United States. Moreover, access to a large capital market for local, non-qualified investors is possible.
- Flexibility of structures: the ability to create funds for various purposes—from venture SPVs to large private equity funds.
Main types of funds in the US
- Venture capital funds invest in startups and innovative companies.
- Private equity funds work with more mature businesses, including buyouts, restructuring, and scaling.
- Hedge funds actively use financial instruments and complex strategies.
- SPVs (Special Purpose Vehicles) are specially created companies created to invest in a specific project or asset.
Risks and requirements
Registering a fund in the US requires strict adherence to SEC (Securities and Exchange Commission) rules, tax reporting, and compliance. But this is precisely what creates a high level of trust in American funds.
Conclusion: investment funds in the US are more than just a capital raising tool; they are a powerful infrastructure for long-term business growth and protecting investor interests.
Responsible fund structuring requires a professional approach. Contact Antwort Law, and we will help you register an investment fund in the US, prepare all necessary documentation, and build transparent relationships with investors.
Olena Deilid
Junior Legal Secretary
Actual Services
FAQ
Are there any limits on the amount of investment the fund can make in the US?
There are no restrictions for one investor. However, the total amount of funds that the fund can attract at an early stage is regulated and must not exceed the established limit. In the future, an expansion procedure is possible.
Can foreign investors participate in a US fund?
Yes, participation is open to both US and foreign investors, with the exception of sanctioned countries.
Who can be an investor in a US fund - only qualified investors or also non-qualified ones?
At the start, the fund can work with both qualified and unqualified investors. For the latter, there are certain quantitative restrictions that can be lifted after additional regulation.
Is there a limit on the number of investors in an American fund?
There are no restrictions for qualified investors. For non-qualified investors, there is a limit that can be expanded by registering with additional requirements.
What are the benefits of operating a fund in the US?
The ability to legally attract investments through bank accounts.
Lower operating costs compared to other jurisdictions.
The reputation of the American fund, which is valued throughout the world.
Flexibility in choosing projects for investment.
How can an American fund invest in projects outside the US?
Yes, the fund can create special purpose vehicles (SPVs) in different countries and invest in international projects, with the exception of prohibited or sanctioned jurisdictions.
Are there any asset allocation requirements for a US fund (e.g. stocks, real estate, startups)?
No. The Fund independently determines the investment strategy and asset distribution within the framework of current legislation.
What are the minimum requirements for a fund structure in the US?
It is necessary to appoint a US resident director, have a legal address (you can use the Regus service), and also launch your own website and phone number to work with investors.
Can an American fund work with investors entirely online?
Yes, all work with investors can be done remotely - concluding contracts, completing KYC/AML and making payments are available in electronic format.
How much does it cost to set up a fund in the US?
The cost of registering an investment fund in the USA depends on the fund structure and the investor's business model. To prepare an individual calculation, contact us and describe your project.