Alpha Raise 01 | The Fund of Funds Playbook - How to Legally Raise Capital and Scale Fast

Raise the Bar · May 13, 2026 · 11m

If you want to raise capital, invest in multiple deals, and scale fast…

this is the model you need to understand.

Fund of funds.

You raise capital → deploy into other deals → scale without operating.

But here’s the catch:

If you structure it wrong, you can violate laws like the Investment Company Act of 1940 and the Investment Advisers Act of 1940.

Here’s what actually matters:

• Use the right exemption (3(c)(1), 3(c)(7))

• Choose the right structure (506(b) or 506(c))

• Don’t act like an investment advisor

• Keep everything clean, clear, and compliant

Most people get this wrong.

And that’s…