Model Structure for Italian Funds Seeking to Raise Capital Internationally in the EU, US & Middle East
Model Structure for Italian Funds Seeking to Raise Capital Internationally in the EU, US & Middle East
Siena Lane Partners is designing a fund-model that is based on a "global parity" thesis, with a team of lawyers from the US, Italy, and Luxembourg. This model removes the excessive tax and regulatory burdens that have hampered Italy’s premiere firms from attracting major institutional capital from foreign investors. In other words, the model is structured to be as tax efficient as any fund domiciled in a foreign investor’s home country. It also gives GPs broader discretion to deploy capital wherever they find the best opportunities.
The Benefits
Italian funds benefit by (i) gaining greater access to international capital and (ii) expanding their investment network.
Investors benefit (i) by gaining greater access to international deal flow, and (ii) from a favorable valuation arbitrage without incurring excessive taxation.
***simplified fund illustration***
US / EU Value Proposition
The US has growth capital, a favorable regulatory landscape, and a commercial marketplace that values the upside potential of EU venture capital.
European companies can access capital quickly to scale their businesses, providing superior returns for entrepreneurs and investors. For US investors, European companies provide alternative investment opportunities at a discount, while also opening doors to opportunities for US investment in the European market.
Siena Lane Partners can help European investors leverage this thesis with the Global Parity Model, combining the strengths and opportunities of both the European and US commercial markets and investment communities.
USA Median Valuation is Significantly Higher than EU
2013-2023 Median Valuations by Stage
PitchBook (2023)