How US fund managers are raising capital in Europe: The strategic role of Luxembourg AIFMs
In an increasingly globalised investment landscape, US fund managers are turning their sights towards Europe as a fertile ground for capital raising. With nearly EUR 23.4 trillion in assets under management (AUM)[1] in the European fund industry, the region offers both depth and diversity in institutional and private capital.
Why Europe? Why now?
According to Ocorian’s latest 2025 North American Fund Manager Survey*, 79% of US and Canadian fund managers plan to increase the proportion of capital raised from Europe over the next five years. The data confirms a strong strategic tilt toward European investors, with 52% of managers already anticipating an uptick in interest from new geographies such as Luxembourg and Ireland.
This builds on a 2024 trend** where 66% of North American managers said they were already using or planning to use pre-marketing activity in Europe, with nearly 70% planning to increase such activity over the next two years.
The rise of the Luxembourg AIFM
Luxembourg has become a preferred jurisdiction for US managers entering Europe. As the largest fund centre in Europe and second only to the US globally, Luxembourg offers a robust legal and regulatory infrastructure, investor-friendly regimes, and most importantly, fully authorised AIFMs that can act as third-party managers.
Among jurisdictions considered for fund setup, 53% of North American managers favoured Luxembourg, citing regulatory stability (64%), tax advisory links (55%), and local infrastructure and talent (53%) as top reasons**.
Luxembourg AIFMs allow US fund sponsors to:
Launch EU-domiciled funds that are fully compliant with AIFMD
Delegate portfolio management to the US manager while retaining regulatory control and reporting obligations
Test the interest of potential investors, without having to launch the fund
Use the AIFMD marketing passport to raise capital across all EEA countries
Access distribution support and regulatory reporting services via the AIFM partner
This passport system is particularly critical, with 41% of managers citing it as their preferred route to broader investor reach, market perception benefits, and operational efficiency.
Pre-marketing: gaining investor insights without commitment
The 2021 Cross-Border Distribution Regulation harmonised pre-marketing rules across the EU, offering more clarity and opportunity for non-EU sponsors using EU AIFMs. According to the 2025 Ocorian survey*, 73% of managers say pre-marketing is now significantly more attractive, with 87% already increasing pre-marketing activity to test investor appetite before fund launch.
Overcoming regulatory barriers
US managers are becoming increasingly sophisticated in their approach to European fundraising. In the 2025 survey*, 69% cited regulatory uncertainty and 75% pointed to more intensive due diligence requirements as key barriers to capital raising. Yet rather than retreat, many are proactively adapting by partnering with EU AIFMs, particularly in Luxembourg, to simplify compliance and accelerate market entry.
The fragmented nature of NPPRs and the limitations of reverse solicitation are also driving change. As of 2024**, only 25% of North American firms planned to continue using NPPR, compared with over 40% now planning to use the AIFMD passport via an authorised AIFM.
Strategic advantages for US managers:
Avoid the costs and fragmentation of NPPR regimes
Speed time-to-market through proven AIFM platforms
Access 30 EEA countries via a single authorisation
Leverage cross-border distribution experience and regulatory expertise
Instil greater confidence among European LPs through regulated structures
Building cross-border success through strategic partnership
As global capital markets continue to converge, the role of Luxembourg AIFMs is becoming central to the strategic plans of US fund managers. The 2025* survey shows that 64% of managers are now reassessing their operating model, with many citing jurisdictional complexity and increased regulation as the primary drivers of change.
By offering regulatory credibility, investor access, and a scalable platform, Luxembourg AIFMs are not just enabling market entry — they are shaping the future of transatlantic capital raising.
According to ALFI, Luxembourg AIFMs now manage over EUR 1.5 trillion[2] in alternative assets, with a significant and growing share attributed to partnerships with international sponsors.
By 2027, it’s estimated that over one-third of all cross-border alternative fund flows into the EU will be channelled through Luxembourg structures. For US managers seeking not only to access but to thrive in the European market, working with a Luxembourg AIFM is no longer optional — it’s essential.
*In May 2025, Ocorian commissioned an independent research company, PureProfile, to interview 100 senior venture capital and mid-market private equity professionals in the US and Canada working for firms with $335.25 billion in assets under management
** Ocorian commissioned independent research company PureProfile to conduct research with 100 senior executives at alternative fund managers focusing on private equity, private debt, real estate, venture capital and infrastructure in the US and Canada, collectively responsible for $1.591 trillion assets under management during April 2024
[1]According to the European Fund and Asset Management Association (EFAMA), the total net assets of UCITS and AIFs in Europe reached EUR 23.4 trillion by the end of Q4 2024. This represents a 13.1% increase over the year, driven by strong performances in global stock markets and robust net inflows.(EFAMA). Find this information in EFAMA's official publication: Quarterly Statistical Release No. 100 (Q4 2024). The report provides detailed insights into the European investment fund industry's developments during that period.(EFAMA, EFAMA). You can access the full report here: (EFAMA) efama.org/sites/default/files/files/quarterly-statistical-release-q4-2024.pdf?utm_source=chatgpt.com
[2] ALFI - EUR 2.5 trillion*
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