Table of Contents
- Benefits of the Portugal Golden Visa
- Open Portugal Bank Account
- Bank Account Application for Portugal Residence Permit
- Funds Subscription Assistance - Portugal Golden Visa
- Documents for Fund Subscription
- Benefits of Fund vs Property Investment
- Fund Investment Strategy for Success
- Portugal Private Equity Fund - Features and Benefits
- Approved Funds, in 2023 - Portugal Golden Visa
- BlueCrow Growth Fund
- BlueCrow - Over 10 years Experience
- Main Focus of the BlueCrow Growth Fund
- Odeon Private Equity Fund
- New Edge Fund
- Portugal Opportunities Fund
- BlackBull Fund
- Terra Verde Capital
- Portugal Yield Fund II
- Bluetech II Fund
- Portugal 88 Fund
- Self Storage Fund I
- Gaia Investment Fund
- RECAP Fund
- EQTY Capital Fund I
- Golden Caravel Fund
- Pela Terra Fund
- Contact VisaConnect! - Portugal Golden Residence Permit and Buying Property in Portugal
- Office Address and Telephone - VisaConnect Portugal
- Useful Links - Portugal Equity Funds
- Frequently Asked Questions - FAQ - Portugal Golden Visa - Funds Investment
In 2023, contact VisaConnect's specialist Consultants, together with our partner Portugal Fund Manager's and Portugal Lawyers, by telephone or complete the online Form or visit us in our offices in Brisbane, Australia, Singapore, Hong Kong, London, UK and Lisbon, Portugal for advice and assistance with your Portugal Golden Visa through a Fund Investment to obtain a Portugal Residency Permit!
Benefits of the Portugal Golden Visa
Outlined below are the benefits of obtaining the Portugal Residence Permit (Portugal Golden Visa):
- Permanent Free Entry to Portugal and the Schengen Area - Residence visa waiver for entering Portugal. Free Movement in the 26 Schengen Area European countries
- Freedom to Live, Work and Study in Portugal
- Flexible Residence Requirements - The minimum stay requirements are 7 days in the first year and 14 days during each of the two subsequent 2-year periods, whether or not consecutive, which is 35 days in 5 years.
- Become a "Non-Habitual Resident" of Portugal for Tax Purposes - Anyone residing in Portugal for 183 days or more during a single calendar year must pay taxes in Portugal on worldwide and local income. Non-residents - those who reside in Portugal fewer than 183 days per year are not required to pay tax on worldwide income.
- Eligible for Permanent Residence - After 5 years of having made the initial investment, the applicant can apply for Portugal Permanent Residence
- Acquire Portuguese Citizenship - Option to acquire Portuguese Citizenship and Portugal Passport, by naturalization, as per the Nationality Act, and obtain all rights of an EU National, after 5 years of having made the initial investment.
- Dual Citizenship - You do not need to renounce your previous nationality to become a Portuguese citizen.
- Portugal Passport is Ranked 6th in the World - The 2023 Q1 Henley Passport Index ranks the Portugal Passport as 6th most powerful passport in the world, and it allows visa free access to 187 countries worldwide.
- Family Residency - The Applicant's family members are eligible for Residence, including: the spouse or partner, under-aged or financially dependent children and Parents of Main Applicant or Parents in Law, who are financially dependent.
- Fast Processing Time - 3 to 6 months until the Golden Visa application is approved, and the Residence Card is issued for an initial period of 1 year, and renewed for periods of 2 years
Open Portugal Bank Account
VisaConnect's Consultant's and our Portuguese Lawyers can assist in the opening of your Portugal bank account, as a foreigner. Opening a Portugal Bank account is the first step before subscribing to the Investment Fund. See details of the main Portugal Banks below:
- Millennium BCP
- Caixa Geral de Depositos
- Banco BPI
Bank Account Application for Portugal Residence Permit
Clients can open bank accounts as Foreigners, with the assistance of their Portuguese Lawyer, through signing a Power of Attorney. One bank that is suitable for Portuguese residents is N26.
During the Bank account registration, Investors will be asked to provide the following information and documents:
- Email address
- First name
- Last name
- Country where you live
- Date of birth
- Phone number (Phone number in any country, but not a virtual number - must be able to receive SMS messages)
- Residential Mailing address (the address they will post your N26 Mastercard)
- Portuguese NIF Number
- Valid Passport or Certified copy
- Certified proof of Income
The Bank will request Client investors to respond to standard Anti Money Laundering (AML) questions, including:
- Job title and industry
- City of birth
- Tax residency (the country where you pay tax)
- Tax ID number where you are a tax resident (optional)
- Agree to the Bank's terms and conditions
Funds Subscription Assistance - Portugal Golden Visa
VisaConnect's Consultant's in cooperation with various Fund Managers and Portugal Lawyers, and we can advise and assist Investors, with the Fund Subscription Process, including the following:
- Promotional Fliers/Teasers
- Fund Powerpoint Presentation
- Management Regulation Prospectus
- Reservation Fee Letter
- Subscription application form
- Investor Profile Suitability Test application
- Source of Funds Statement
- KYC Due Diligence forms
- Bank Transfer Deposit to Fund Account
- Fund Declaration of Investment - Declaracao Entidade Gestora - issued by the Fund Manager
Documents for Fund Subscription
The Investor/Client must provide their Portugal Lawyers with the following supporting documents for the purpose of the Fund Subscription:
- Passport - Valid certified copy for all Applicants - to obtain the NIF
- Certified Proof of Address - to obtain the NIF
- Portuguese Fiscal Number (NIF) - The Investor´s lawyer may obtain a NIF for the client or the investor may go to a local Registry/Finanças office (apply by mail or online). In addition, the client must also choose a Portuguese Tax representative for communication purposes.
- Source of Wealth documents
- Certified Proof of Occupation
- Portuguese Bank Account details
Benefits of Fund vs Property Investment
The Fund route offers the following benefits:
- 1. Tax Efficient - In almost all scenarios Funds are more tax efficient. Direct ownership entails numerous taxes from acquisition, rental and eventual sale. Funds are exempt from many of these taxes.
- 2. Fund market is Highly Regulated - The fact that the Fund market is higly regulated makes funds more secure and offers foreign investors peace of mind given that the Fund Manager, Custodian Bank and CMVM (regulator) supervises all their activity.
- 3. Simple and low maintenance - Holding property directly means dealing with numerous fees, tenants, repairs, building insurance, fiscal representation, mortgages and the conveyancing process.
- 4. Easy Exit - No complicated and costly sales process required.
Fund Investment Strategy for Success
Most Portuguese Funds have an Investment Strategy for success, which includes the following factors:
- 1. Team - Have a like-minded, complementary skill-set team with local experience and a global perspective. Appoint best-in-class professional team and expert advisors to provide insight and overview to an ever-changing environment.
- 2. Quality - Buy quality real estate from premier developers with strong proven track records and after sale support.
- 3. Buy Well - Rule is NOT to lose money. Target Low to moderate Risk-Adjusted Returns with a focus on Capital Preservation.
- 4. Diversification - Provide an effective Portfolio Spread across property types, locations and development stages. Apply modern portfolio management where no single property value is more than 10% of the total investment.
- 5. Financially Efficient - Achieve significant tax and cost efficiencies for investments via Private Equity Funds, providing higher returns to investors than direct ownership of traditional real estate. Ability to have up to 50% leverage on real estate portfolio, taking advantage of historically low interest rates and providing enhanced leveraged returns.
Portugal Private Equity Fund - Features and Benefits
The main features of a Portugal Private Equity Fund are as follows:
- Structure - Type Fundo Capital de Risco | Venture Capital/Private Equity Fund
- Regulated by Comissao do Mercado de Valores Mobiliarios (CMVM) - Portuguese Securities Market Commission - Registration Code: 0000
- Fund Manager - Long history as trusted and experienced professionals in fundraising, deal flow and analysis and execution of investments, in their sectors of specialisation.
- Investment Adviser or General Partner
- Legal/Tax Adviser
- Custodian Bank
- Fund Launch (Seed Investors)
- Subscription Period from date Until date - usually around 15 - 21 months
- Liquidation Period Starting - eg. First Quarter 2028
- Fund Term - usually 7 - 10 years, with possible extensions of 1 or 2 x 12 months.
- Current Fund Size
- Fund Size Target - eg. €35 - 60 Million
- Minimum Participation - for example: €50,000, €150,000 or full €500,000
- Full investment for Golden Visa Requirement- €352,500
- Setup Fee - 3-5%
- Fund Management Fees and Expenses - 1% (p.a.)
- Performance Fee - 5 - 12% or 20% with a hurdle rate of 3%
- Yearly Gross Yield or Fund Expected Return - 6 % - 15 % or Overall return distributed at Redemption
- Fund Focus - exclusive focus on Capital Preservation or focus on High Yield
- Yearly Expected appreciation - 4 - 8% (Conservative Scenario)
Approved Funds, in 2023 - Portugal Golden Visa
VisaConnect's Consultants can assist and advise with the following top Performing Funds - Fundo de Capital de Risco, which are regulated and supervised by the CMVM - Comissão do Mercado de Valores Mobiliários (Portuguese Securities Market Commission), and eligible for the Portugal Golden Visa, and are also Funds, which accept US citizens:
BlueCrow Growth Fund
Investing in a diverse, risk limited and higher return portfolio in an effortless process. Investment portfolio comprises:
1. Agricultural Assets - 3 Portfolio Companies (MDF SA, QNSR LDA, NaturaFish SA). Search for companies developing high yielding farming assets as well as Land or Processing and Recycling facilities. The Portfolio comprises: Algarve: Aquaculture farming of seabass, Minho & Douro: Wine production, Evora, Beja and Sines Triangle: Olive oil, Cork and Nut groves.
2. Industrial Assets - 3 Portfolio Companies (Brazfin SA, MDF SA, DO LDA) with investments in Industrial facilities and warehousing spaces for production and assembling. Storage of industrial goods. The Portfolio goal is to invest in facilities to accommodate solid local and international industrial players.
3. Leisure & Hospitality Assets - 3 Portfolio Companies (Brazfin SA, QNSR LDA, Boega SA), with investments in sustainable locations and medium tourism operations in or near city centers. The Porofolio goal is to Buy and develop an additional 5-7 Portfolio entries.
The Growth Fund objective is maintenance and optimization of the current portfolio, and improve profitability of the existing portfolio companies. Investments are decided and monitored by BlueCrow professionals, with no additional cost. The Asset classes are selected with the minimum risk of yield distribution.
BlueCrow - Over 10 years Experience
- 2010 - BlueCrow is founded, with a focus on Wealth management. Establishes Partnership with Pictet and Baloise banks
- 2015 - Advisory to Vitoria Seguros' Portfolio, Acquisition of Luso Partners and partnership with Banco Carregosa
- 2016 - Founding of BlueCrow's Venture Capital fund
- 2017 - Launch of BlueCrow's 1st Innovation Fund, with tax benefit promotions, which was a pioneer in Portugal
- 2018 - Advisory to Lynx on the management of the Discovery Fund and creation of BlueCrow's Growth Fund I
- 2021 - As at December 2021, BlueCrow Capital is valued at €369.3 million, with €252.8 million in Venture Capital comprising 817 Investors, and €116.5 million in Wealth Management comprising 74 Investors
Main Focus of the BlueCrow Growth Fund
- Asset price stability.
- Historical gross yield is 6.4%.
- The Fund is partnered with Millenium BCP Bank, Mazars Auditors, and regulated by CMVM.
- The Minimum Participation is €52,500, and the Fund size target is €70 Million.
- Setup fee is 5%, Management fee is 1% and Performance fee is 10%.
Odeon Private Equity Fund
Odeon Private Fund will invest in companies that will hold one asset each. The fund will include 3-6 projects in prime locations with market upside, including Restaurant Theatre - Prime Avenue, City Centre, Hotel 5 Star - Prime Avenue, City Centre and Residential Villas in Lisbon city centre. A solid portfolio with Golden Visa eligibility and attractive profits.
Fund's Balanced Strategy
The fund has a conservative balanced strategy with two types of projects: “Develop & Rent + Sell” and "Develop & Sell".
- " Develop & Rent + Sell" projects - represents 40% of the fund. These projects consist of commercial developments, with a Restaurant Theatre and a 5-Star Boutique Hotel, both located on the "Champs Elysee" of Lisbon (Avenida da Liberdade). These Projects will generate rental income to pay for the annual "coupon" return (4% target). At fund maturity, these projects will be sold and the potential upside will contribute to the performance return
- " Develop & Sell" projects - represents the remaining 60% of the Fund, which consists of two residential developments projects in strategic locations, that will also contribute to the performance return at exit
Benefits of the Odeon Private Fund
1. Fund Manager - STAG Fund Management - is a management company specialized in private equity and venture capital funds. STAG´s team of professionals combine over 30 years experience in dealing with private equity, corporate restructuring and corporate finance.
2. A transparent and conservative fund - with a clear business strategy and a confident 11% target return on investment per year, including 4% annual target coupon;
3. Diversified fund of prime projects - focused in the safest investment segment: Real Estate;
4. One fund with 4-7 projects in Lisbon - to maintain focus, quality and insure profitability;
5. Assets acquired at competitive values - to initiate the business model baseline;
6. Golden Visa eligibility along with Capital Preservation - and feasible returns on investment are at the heart of the strategy.
7. Investment terms - Minimum Participation is €150,000, and the Maximum Fund Size is €50 million Euros;
8. Fund Fees - Fund Management fee is 1% p.a. (not paid by Investor), and the one-off Subscription fee is 1%, with a maximum of €3,250 (paid by Investor).
Proven Track Record - Odeon Properties Group
- Dedicated management team with proven track record
- 8 years track record of profitable investments solely focused in Portugal
- Large portfolio of iconic developments
- Steady return with 15.5% IRR delivered to investors year-over-year
- Total of €60 Million investment done across 10+ projects
- Total sales of €80 Million
- Senior team responsible for executing the projects
- Successful partnerships with Family Offices, HNWI and third party funds
New Edge Fund
The New Edge Fund comprises:
- Up to 40% Bonds and other equivalent Assets, with Risk mitigation by active management, Full liquidity, and almost null volatility
- 60% in Companies focused in Core Real Assets, with risk mitigation due to Core Real Asset Guarantees.
- Unique Track-record and Valuation and Soft Exit / Divestment.
The Investment Adviser is WT Group and the Fund is managed by Quadrantis Capital - a Portuguese venture capital management company, established in 2014, that promotes investments in sustainable markets capitalizing on the strong track-record of its team. The Fund's exclusive focus is Capital Preservation, with up to 6% Overall return, distributed at Redemption.
Portugal Opportunities Fund
Portugal Opportunities Fund (POF) is a Venture Capital Investment Fund focused on Real Estate Opportunities, targeting highly attractive, high-end projects and opportunities with a medium risk/ return investment strategy. It was designed by the Fund Manager - Quadrantis Capital, in partnership with major experts in the target Real Estate sub-sectors, which sit as specialized advisors in its Advisory Board. With this approach, POF ensures a strategy in the market which is fully independent from market players, promoters or its investors and the investment term is 7 years.
Areas of Investment
- New Construction projects
- Renovation projects
- Green Field
- High-end market Residential and Hospitality
Fund Structure and Terms - Portugal Opportunities Fund
1. Investment Advisor - Vogue Homes is an investment management company, which has been operating in the real estate market since 2001. Always positioned in the Premium residential market, it develops its activity by enhancing investments through the concept of fine living, with creative and innovative solutions.
2. Fund Manager - Experienced with a good track-record, and has launched its first investment fund in 2018, in the area of Energy Efficiency, and in 2020 launched 3 other specialized VC Investment Funds, partnering with market experts in their own fields.
3. Target Fund Return is 8% annually - 0% - 8%: 100% goes to the investor; Above target (8%), 75% goes to the investor, and the remaining 25% to CatB holders. The Target return for the investor is after deduction of performance fees.
4. Minimum Participation and Fees - Minimum Participation is just €50,000, and the management fee is 0.5% annually.
Team and Track-Record - Quadrantis Capital
Quadrantis is a Portuguese venture capital management company that started operating in 2018 and that promotes sustainable investments capitalizing on the strong track record of its team, focused in generating value for its stakeholders:
1. Leadership - Extensive executive management experience within tier-1 private and public companies in markets such as venture capital, energy, water, banking, telecom’s, real estate consulting and distribution.
2. Over 30 years Experience - Extensive experience within the venture capital market and key institutions such as Fomentinveste, JP Morgan, among others.
3. More than €200 million Funds Managed - Funds managed directly by Quadrantis Partners in previous Co’s and Funds such as Fomentinvest, mco2, Luso Carbon Fund, New Energy Fund and Floresta Atlântica.
4. 15% Returns - Average returns of previous funds under direct management by members of the executive management team.
BlackBull Fund is intended to invest equity in the capitalisation of companies, with a high potential for development and valuation, under the terms of Law no. 18/2015. The Fund is managed by Quadrantis Capital, and will invest at least 60% of its assets in the capitalisation of commercial companies based in Portugal, which develop activities mainly in the tourism, real estate, and generalist sectors.
35% of the Asset Allocation Investment Sectors include:
- Offices: top location, medium/long term leases, quality rating tenants
- Supermarkets: top players, long term leases
- Hospitality: long term leased contracts, quality credit rating tenants
- Retail: city centre convenient, prime retail, Logistic hubs: top location, medium/long term leases
65% of the Asset Allocation Investment Sectors include:
- Real estate development/refurbishment
- Direct investment into companies (Equity/ Loans) with solid fundamentals
- Real estate properties
- Direct investment into companies in the following sectors: industry, healthcare, energy, etc
Investment Strategy - BlackBull Fund
1. Diversified Portfolio with a Balanced Risk Profile
- Disciplined portfolio construction and risk management through "speed to income" investment philosophy
- Diversified portfolio investment structure, no single investment >33% of the portfolio ensuring compliance at end of investment period.
- Mixed asset categories with different risk and maturity profiles, lowers risk investment profile.
2. Safe - Targeting Profitability & Protecting Invested Capital
Up to 35% of the fund's asset allocation will have the objective to incorporate the following investment guidelines:
- Properties leased: Secured with bank guarantees or futures revenues. Agreed put/call option: exit through asset buy back at maturity
- Properties with intrinsic "up side" through conversion /capex and/or active asset management
- Properties with monetized profile for divestment purposes
- Listed real estate investment trust
Investment Terms - BlackBull Fund
There is a Fixed Management fee of 1.25%, with a Fund set-up fee of 1.25%. The Target Return is 8% per annum after deducting the Performance fee, equivalent to a cumulative return of 45%, with an assumption of 40% leverage for an 8 Year investment term. Minimum Investor Commitment Amount is €50,000.
Terra Verde Capital
Terra Verde Capital is raising a €150M fund from 15-20 Investments to acquire irrigated farmland opportunities mostly located in Portugal. Due to its strong track record in agribusiness, with a team of investment professionals and an advisory board with 20+ years of experience in the sector, Terra Verde was able to build a pipeline of excellent agricultural properties with a combined total area of +6000 hectares. These properties will be opportunistically acquired and leased to farmers with a strong operating history, undisputed creditworthiness and high ESG awareness. Terra's integrated strategy provides investors with a steady income stream through the entire lifespan of the fund on top of the natural appreciation of the underlying assets, while making a positive impact for a sustainable farming system.
Capital Background - Terra Verde
- Terra Verde Capital is the leading agriculture-focused investment manager in Portugal with more than 15.000 ha of irrigated land under management across a variety of crops
- Terra Verde Capital is led by an experienced team of farmers and investors with decades of investment and farmland management experience
- Terra Verde Capital and Quadrantis Capital (The Fund Manager) have a privileged network of different agribusiness stakeholders providing a unique sourcing edge when analyzing and investing in irrigated land opportunities
Why Agriculture: Asset and Investment Opportunity?
Irrigated farmland is a very attractive & scarce asset class that offers investors a combination of a steady yearly income and high exit returns due to the natural appreciation of the land:
- Consistent high digit risk-adjusted returns over the past 30 years (~11% CAGR)
- Uncorrelated to other asset classes, performing well amidst periods of market volatility
- Inflation protected: rental yields are inflation linked and have been appreciating at higher rates than inflation over the past 40 years
- Capital protection - asset backed investment with very strong capital protection
- Agriculture Sector in Portugal is in expansion with increased export activities and growth rates high above national economy
- Unparallel conditions to grow crops (Perfect climate, incredible water supply & high-quality soils)
- Very attractive land price compared to other European countries
Fund Overview - Terra Nova
- 1. Net IRR & Cash Yield - Projected valuation of portfolio supports a net return of 8% with an annual 5% cash income return after the investment period.
- 2. Expected MoM Achieved - 1.85x expected Money Multiple generated for the investor based on stable rental income stream and land appreciation.
- 3. Target Holding Period - 5 years of weighted average investment life with a total investment duration of 6 years.
- 4. Fees Structure - 1.5% yearly management fee over the fund’s committed capital and 25% carried interest fee to align incentives with investors.
- 5. Minimum Investment - €100.000.
Portugal Yield Fund II
The Portugal Yield Fund II focuses on real estate backed businesses. It is oriented to cash flow generation (the fund will take advantage of the capital appreciation of the market as an upside). The Fund seeks diversified and transparent exposure to the Portuguese real estate market. The investment strategy will target investing at least 80% of total assets in yield generating commercial real estate assets. The remaining 20% can be invested in other yield generating businesses with strong asset coverage (e.g. infrastructure, concessions). Previous successful and now fully-subscribed funds include: Portugal Yield Fund I and Greytech I and II. Note that Portugal Yield Fund I raised €19 million capital from more than 60 Investors.
Fundraising and Pipeline
- Contract discussion for the acquisition of a supermarket in a Lisbon premium location, rented to a multinational company
- Acquisition price: 4.2M€ | Debt: 55% | Rental Yield: 5.2%
- Lease agreement until 2032
- One of the tenants’ top 10 stores
Fund Manager - Iberis Capital
The advantages of Iberis Capital are listed below:
- 1. Focus - Partners (and entire team) exclusively dedicated to Iberis. Investment team 100% dedicated to the execution of the funds and monitoring of the portfolio companies.
- 1. Governance - Fully independent; 100% owned by its partners, all partners have the same voting rights (1 partner = 1 vote). Collective decision of partners in investments and management; No partner is unmovable or has special decision rights (formal or informal).
- 1. Alignment - Alignment of interests with >60% of net worth of partners invested in Iberis Funds. Diversified investor base with +500 investors, none representing more than 10% of the AuM.
- 1. High Performance Team - Investment team of 13 elements and support team of 4 elements. AuM of €285 million and more than 600 Investors.
Fund Terms - Portugal Yield Fund II
- Target Returns - 5-6% post leverage and fund fees, without counting with capital appreciation. Hurdle rate of 4%
- Fees - 3% set-up fee and 1.25% per annum management fee.
- Minimum Investment - is €250,200.
Bluetech II Fund
The Bluetech II Fund will invest in innovative and technological Portuguese SME's with the same investment strategy as the Bluetech I Fund. The Fund Manager - Iberis Capital will identify attractive growth opportunities.
- Start-ups with solid R&D projects, with proven results and potential for global scale
- Established companies with strong R&D, with positive cash-flow, offering downside protection
- Portfolio with 15-20 companies with investment tickets of €3-10M in each one
- Expected returns in the mid teens (15%-20% IRR)
- Hurdle rate of 7% with catch up, not considering the latent period
Fund Terms and Fees
- 2.95% set up fee
- 2% management fee p.a. after the latent period; 0% during the latent period
- Carried Interest: 20% on total investor returns with catch up
- Minimum Investment: €100,000 (min. of 250,000€ in Iberis’ funds)
- Target size of the fund: €100M with 15-20 companies
Portugal 88 Fund
Portugal 88 invests in companies in the luxury short-term rental real estate sector. The Fund Manager is Insula Capital and the Properties are managed by ICONICO luxury operator.
Property Profile - Portugal 88
- Located in key touristic areas with year-round demand to optimize profit
- Iconic buildings for a uniquely instagramable experience
- Family friendly homes with lots of privacy
- Average 4 rooms (sweet spot)
- Average cost €2M including taxes, renovations and decor
- Located in short-term rental licensed neighbourhoods
Return on Investment - Portugal 88
Property appreciation yield at the fund exit
- Short-term rental yield paid yearly
- Competitive tax regime and no headaches versus acquiring property directly
- Total investment is €353,500 (among the lowest GV options in the market). No other costs or fees throughout the entire duration of the fund. No exit fees or costs. The estimated total fund fees are 2.8% yearly, which includes all costs of running the fund
- The estimated Net Yearly Yield is 4.74%
Return on Life - Portugal 88
- Enjoy any property for free 14 days per year (pay only cleaning fee)
- Split across different properties and dates (excluding 15 Jun to 15 Sep)
- Bring any family and friends to stay in your €2M properties
- Total investor occupancy per property is 30% from Sep to Jun (9 months)
Self Storage Fund I
The Self Storage Fund I invests in companies owning self-storage operators and facilities that have high potential for growth and assets that can be refurbished or converted into facilities. At the Fund level, no single investment represents more than 33% of the fund, which results in hyper-diversification. Each facility has dozens or hundreds of tenants that make this investment very conservative. The investments have real assets inside high density neighbourhoods that always have value.
Management of the facilities is by a professional operator, with sales, marketing and operations structure. The Target is 5% Yearly Return to the fund on any investment. The Fund Manager is Insula Capital and the Fund is regulated by CMVM and there are regular reports to the market authority and investors on the investments made and fund performance. The Fund fees entail a 1% management fee and 20% performance fee with a hurdle rate of 3%.
1. Risk Profile - Conservative
- Double approach: a. Investment in existing facilities, already operated and cash generating but that are underperforming; b. Investment in assets that can be reconverted into self-storage facilities and expect cash generation after 4 to 6 months;
- Diminished licensing risk
2. Target Investment Criteria - Existing Facilities/ Operators
- Look for facilities that have at least 50% occupancy rate that are managed by small and unprofessional operators;
- Clear visibility that occupancy is underperforming;
- Rents below market price and lack of ancillary revenue streams;
- Lack of technology;
3. Target investment criteria - New facilities
- Look for distressed assets in high density areas with lack of self-storage supply;
- Target acquisition prices below € 700 / sqm gross;
- Easy to refurbish with clean spaces;
- Easy access and parking area;
- Possibility of having a leasehold with an option to acquire the asset;
4. Hyper diversification
- Two levels of diversification: a. At the fund level – no single investment representing more than 33% of the fund; b. At the investment level – each facility has dozens or hundreds of tenants that make this investment very conservative.
Gaia Investment Fund
The Gaia Investment Fund is a private equity fund that is managed by Insula Capital. As an authorized financial intermediary since January 1996, Insula is a fully independent company to Gaia, which looks after the interests of the investors and its capital is mainly held by top management.
The Gaia Fund will invest in existing vineyards and wine production, as well as forestry and cork, to promote sustainable practices and production whilst growing one of Portugal’s most recognisable industries.
The Fund revolves around building a portfolio of profitable, low-risk, sustainable investments in farmland across Portugal. We have selected two areas of competitive advantage and growth potential.
Why Invest in Wine in Portugal?
- #8 in the world in terms of vineyard acreage
- #9 biggest exporter (increasing yearly)
- #1 per capita consumer in the world
- #4 in exports value per unit (just after France, Italy and USA)
- 20%+ increase in exports value per unit in the last decade
- Portuguese wine quality has been recognized with numerous awards around the world. For example: 492 awards at the Decanter WWA, 643 medals won at last Wine Challenge Edition. All this has been contributing to significant price increases in Portuguese wine.
Why Invest in Cork in Portugal?
Today, over 70% of all wines worldwide are sealed with cork stoppers; there is a clear preference for cork which is driven by factors like sustainability, innovation and premiumisation (for example the US market showed a rise from 47% to 67% of corked-sealed premium wines in the last decade, with more than 90% of wines priced above $20 per bottle being sealed with cork).
Cork and wine are two natural products that are perfect allies, not only because of the superior performance offered by cork in terms of ageing the wine, but also in terms of environmental performance.
Gaia Fund Terms
- Investments - 80-85% in assets or companies with vineyards or wine projects / 15-20% in assets or companies developing forestry projects, focusing on cork.
- Assets Under Management - Initial target €16 Million and potentially €20 Million.
- Minimum Investment - Minimum Participation Units for a minimum of €150,000 each.
- Funds Term Upside - Class B shareholders will have the right to receive 60% of the upside by the end of the fund resulting in a yearly IRR of 6,13%.
- Subscription fee and Management fee - €3,000 paid once by the investor at subscription. Management fee of 0.5% of total assets paid annually by the fund to the Fund Manager.
RECap Fund will invest in Real Estate companies aiming at funding development projects or at buying Real Estate assets for rental income.
Portfolio Asset Class
- 1. Bonds - Preferred fixed-return bond instruments backed by real estate underlying properties (secured income).
- 2. Residential - Prime apartments for rental income (income + capital appreciation).
- 3. Retail - Commercial units in residential schemes for secured long-term income (income + capital appreciation).
- 4. Development - Equity into real estate development projects (both Residential and Commercial).
- Minimum 60% in sought-after locations in Portugal
- Maximum 40% in sought after locations in other European capitals, Switzerland and the United Kingdom
- No more than 30% of the Fund invested in a single property/project
- Risk spreading strategy due to allocation into several risk-adjusted profiles
- Fund Manager - Insula Capital
- Target Fund Size - €100 million
- Minimum Participation - €100,000 (corresponding to 100 units
- Dividend Policy - Class A: 1) Preferred dividend of 3.5%, to be paid on a quarterly basis (or capitalized in case there is no sufficient cash-flow) Class B: 1) Capitalized Annual return of 3.0% to class B holders, after the payment of the Preferred distributable Class A dividend of 3,5%
- Subscription Fee and Management Fee - 1.5% with a minimum €3,000 and Management fee of 1.50%
- Target Return - 6% IRR (this is not a guaranteed return)
EQTY Capital Fund I
EQTY consolidate like-minded investments into diversified property portfolios delivered by developers with a proven track record and a strong reputation for delivering excellence. They achieve discounted acquisitions through bulk-buying and pass these savings directly to their investors, providing an immediate upside to initial investment. EQTY are a team with long standing relationships built on professional expertise, trust and shared common values. They pride themselves on challenging the status quo, with strong partnerships fostered on the back of their track records and their relentless pursuit in delivering on their long-term objectives.
All EQTY investments go through a triple check system, through the Fund Advisor, Fund Manager and Custodian Bank and are also reviewed through a strict audit process where any irregularities are flagged to the Portuguese Regulator.
1. EQTY Fund Advisor - Advisory Committee comprises of 5 members (4 Shareholders and 1 non-Executive Director) who will review potential investments and pass on recommended opportunities that meet the defined objectives and strict criteria of the fund.
2. The Fund Manager Includes an Investment Committee with the responsibility to comment on each investment proposal and portfolio development. The Fund Manager will have the final sign-off on each investment, in accordance with the Investment Committee’s recommendations.
3. The Custodian Bank The Custodian Bank is the ultimate gateway and check to ensure the acquisitions are in line with the management regulations and has a duty to report any suspected fraudulent activities to the relevant authorities and any irregularities to the regulator.
The EQTY CAPITAL FUND provides access to a select and diverse portfolio from Portugal’s leading Real Estate Developers, all with reputations of delivering exceptional properties, including Residential Apartments, Townhouses, Villas and Retail, Commercial and Education. The Subscription fee is 1.5% of invested capital. Annual fee is 1.5%. Preferred Return to investors is 3%. Minimum Participation is €100,000.
Golden Caravel Fund
The Golden Caravel Fund (GCF) invests equity into Core/Core+ yielding prime Real Estate Assets with strong covenants in Portugal and pursue the objective of capital preservation. Investing equity into conservative Core/Core+ yielding prime Real Estate Assets including: Office, Retail, Hospitality and Distribution Logistics, with strong covenants in Portugal and pursuing the objective of capital preservation.
Golden Caravel Fund - features
1. GCF has an ESG strategy (Environmental, Social, and Governance), from investment analysis to active management and exit. The main ESG strategy will target Energy Efficiency, and this will impact 8 out of 17 United Nations Sustainable Development Goals. Note that Investors are increasingly applying these ESG non-financial factors as part of their analysis process to identify material risks and growth opportunities.
2.Forecast 3% return annually from Year 2 with return of invested capital at fund term end.
3.Minimum investment of €300,000 for the Golden Visa Program, in 2023.
4. The Fund Manager is Grosvenor House of Investments and they have has entered into a strategic partnership with Square Asset Management who is appointed as Investment advisor to the Fund.
Square Asset Management - features
- Square Asset Management is the only independent management company to manage Open-Ended Real Estate Investment Funds.
- It is a pioneer in the inclusion of alternative real estate assets amongst its Funds.
- Square is the first management company subcontracted by large Portuguese financial groups.
- It is Portugal’s leading independent Asset Manager and is the largest fund manager in Portugal, with over 16 years experience, and €1.4 Billion Euros under asset management, ..
- Square manages real estate promotion and management: Offices, Shopping centers, Hospital / Healthcare, Residential and Hotels/Resorts.
Pela Terra Fund
Now, in 2023, Investors can combat climate change, protect our soil, secure long-term jobs, food security and biodiversity, all with the same investment used to achieve Portugal Residence and Citizenship. Pela Terra are building a portfolio of low risk sustainable investments within the Pela Terra Farmland fund. Risk averse investors appreciate a reassuringly uncomplicated proposal. Pela Terra's strategy is to lease land to sustainable partners - predictable, contractually protected income - a relaxing route to citizenship.
Farmland as an Asset Class
One of the unique selling points of farmland as a portfolio investment is its impressive consistency. Other mainstays like gold or stock market indices can drop over 40% or 50% in a single year. Returns in farmland have been positive every single year since 1990:
1. Industry with Purpose - Every one of us is dependent on farming three times per day, every day.
2. "Buy Land, they're not making it Anymore" - Mark Twain’s famous quip was prescient. Not only is the supply of land limited, it’s reducing every year as farmland is claimed by construction.
3. Demand for Food - By 2050 global population is set to rise by 35%, to 10.5 billion. Crop growth needs to double over the same period to keep up.
4. Long Term Investment Strategy - Farmland is an attractive, long-term investment that provides resilience to challenging economic conditions.
5. Uncorrelated Asset Class - Farmland is uncorrelated with other major asset classes, offering a unique diversification opportunity to prudent investors.
6. Hedge against Inflation - Over time, farmland has proven to have a positive correlation with inflation - more so than bonds, the stock market, and even gold. No other investment offers as successful a hedge against inflation as farmland.
Investment Terms - Pela Terra Fund
10.5 billion people on Earth in 2050 means demand for crop production will double! The value of farmland is linked to population growth. Their investments are 100% backed by a reassuringly durable asset.
- Primary Source of Income - 25 year Rental Income Contracts. Asset appreciation
- Annual Return - There is a Forecast blended total of 5% Annual return and an additional 14% Capital Gains at the termination of the Fund duration of 7 years
- Fund Manager - Pela Terra Farmland Fund is fully managed by STAG Management SCR SA
- Set-Up Fee and Annual Fee - The Set-Up fee is a 1% fee to cover the initial account setup, plus there is an annual 0.95% fee to cover the management of the investments
- Minimum Participation - is €100,000 Euros. There are no fees when your capital and profit are returned, at the end of the fund
Contact VisaConnect! - Portugal Golden Residence Permit and Buying Property in Portugal
For information about the Portugal Property (Real Estate) and how our Immigration Consultants and Portugal Lawyers can assist you, click on the following VisaConnect website pages:
- Buy Property in Portugal
- Portugal Private Equity Fund for Golden Visa, in 2023 - VisaConnect's PDF
- Portugal Citizenship for Descendants of Sephardic Jews
Office Address and Telephone - VisaConnect Portugal
Contact VisaConnect's Consultants at our Lisbon, Portugal office below:
Avenida do Atlântico, Nº 16, escritório 5.07,
1990-019, Parque das Nações
Telephone: (+351) 304 501 939
Useful Links - Portugal Equity Funds
- CMVM - Portuguese Securities Market Commission
- SEF - Servicio De Estraneiros E Fronteiras - ARI Residence Permit for Investment Activity
- Schengen Area - The World's Largest Visa Free Zone
Frequently Asked Questions - FAQ - Portugal Golden Visa - Funds Investment
How do I open a Portuguese Bank account?
Usually, your Visa Agency and the Portuguese Lawyer will assist you with completion of application forms and supporting documents, so that you can open your bank account, without visiting Portugal. Note that the transfer of the €500,000 Euros for the investment would be transferred from your foreign bank account to your Portugal bank account. Then you would transfer the funds from the Portugal bank account to your Fund or Funds Depositary Bank accounts.
Can I invest in 3-4 Funds to 'spread the risk'?
Yes. It's definitely possible to invest in multiple Funds, but be aware that certain Funds have a minimum participation amount, which may be approximately €100,000 Euros, whereas other Funds stipulate that the entire investment amount of €500,000 Euros must be invested in their Fund.
What Form does a Fund Manager request that I complete in order to invest?
Each Fund has their own Compliance process, which includes completion of a Form and supporting documents about the Investor, Due diligence checks, KYC, and Money laundering, but the Applicant often completes an 'Investor Profile Suitability Test' form (TESTE DE ADEQUAÇÃO DE PERFIL DE INVESTIDOR – PESSOA SINGULAR).
If I decided to invest in a Fund, do I need to sign an Agreement with each Fund?
Yes. You will need to complete a Subscription Agreement (Boletim Subscricao), which includes the following information: 1. Identification (Contact details). 2. Politically Exposed Persons? 3. Income Source/Relevant Wealth Data. 4. List of Attached Documents - such as Proof of Overseas address, Copy of Taxpayer card, Proof of Profession/Retirement and Evidence of Portuguese bank account. 5. Subscription Identification - Number of Units and amount that you will invest in the fund in Euros. 6. Form of Payment - bank transfer. 7. Signatures (Assinaturas) - signed and dated by the Fund Manager and the Investor.
What are the main advantages of Funds Investment versus Residential Property Investment?
A Fund Investment has less fees and taxes associated with it, as opposed to purchase of Property in Portugal, and the Fund should generate a higher Annual Net income than Property. Generally, a Fund may have a Set-Up fee, Management fee - around 1% per annum, and Performance fee - around 5-10%. Note that all fees are deducted from invested capital. Whereas, a Residential Investment has the following fees and taxes: Property Management fees, Condominium fees, Maintenance costs, Insurance policies, Deed Charges, Fiscal and Legal representative costs, Transfer tax, Annual Gross IRR, Municipality tax, Net income Tax and Property maintenance costs.
What are the steps required to get a Golden Visa through Funds investment?
1. Visa Agency Assistance - sign agreement with VisaConnect for Agency assistance and advice. 2. Applicant's Intention to Subscribe to the Fund (s) - complete KYC process. 3. Portuguese Lawyer - VisaConnect's referral to a Portuguese Lawyer and sign Agreement with Lawyer for Golden Visa assistance. 4. Open Portuguese bank account. 5. Subscribe to the Fund (s) and make the Investment. 6. Golden Visa Residency Card approved in approximately 6 months.
What are a few significant benefits of investing in Portugal?
A. Quality of Life. B. Political and Social stability. C. Modern Infrastructure. D. Accress to free world class education. E. 5th Strongest Passport - 184 visa free countries. F. Access to free and universal healthcare. G. 3rd safest country in the world. H. Best country in Europe for expats. I. Favourable tax and fiscal regime. J. Access to Schengen Area. K. Mediterranean Food, Nature & Lifestyle.
Once I have made the investment, do I get any confirmation document from each Fund?
Yes. You will receive a Declaracao Entidade Gestora (Fund Declaration), which will be signed and dated by the Directors of the Fund and specify the number of Units and total amount in Euros invested.
What portfolio type of Investment should I invest in?
There are many different types of investment, with some investments generating higher annual returns than other investments. Funds often comprise the following types of investments: 1. Commercial Real Estate - Retail, Shopping centres and Offices. 2. Residential Real Estate - Apartment projects - off plan or newly developed or investment in short or long term rental real estate business. 3. Wine - Vineyards and Cork production. 4. Self-Storage - The most resilient real estate asset class that depends on life events and not on economic cycles and has sticky customers. Self-Storage was the less affected REIT asset class in the 2008 financial crisis. Covid-19 is boosting the industry due to the increase in e-commerce, downsizing and displacement. 5. Agricultural Properties - Irrigated farmland is a very attractive & scarce asset class that offers investors a combination of a steady yearly income and high exit returns due to the natural appreciation of the land. 6. Farmland - Sustainable development - Organic agriculture improves nutrition and supports local food. Protects bio-diversity, halts and reverses land degradation, and promotes vital ecosystems through their farming methods. In addition, Sustainable agricultur sequesters carbon and creates more resilient landscapes. 7. Start-Ups - with solid R&D projects, with proven results and potential for global scale. 8. Established Companies - with strong R&D, with positive cash-flow, offering downside protection.
Does a Fund need to be registered with the Portuguese Securities Market Commission (CMVM)?
Yes. The Fund would need to be supervised and regulated by the Portuguese Securities Market Commission (CMVM) - Comissão do Mercado de Valores Mobiliários, with an Authorised Number.
What is a good Target Return on my Investment?
Each fund has a different Target Return, and some Funds may be regarded as more conservative, with a focus of 'Capital Preservation', while other funds may be regarded as more speculative, but with a higher Target Return. For example, the Blackbull fund has an 8% (estimated annualized return, not guaranteed), with an investment hurdle rate of 4%, after deducting performance fee. Alternatively, the Odeon Private Fund is targeting an overall 11% total return per year that includes a 4% annual target coupon and potential upside return at fund maturity.