How Investment Funds Are Benefiting Portugal Golden Visa Investors
The recent changes to the Portugal Golden Visa Program have brought considerable movement into Portugal’s already dynamic private equity and venture capital funds. What was considered a niche market in the past with fairly limited opportunities for investors and family offices has become a robust industry with a wide range of options for professional and retail investors. Currently, there are over 35 eligible funds raising capital for the Portugal Golden Visa.
According to our data, eligible golden visa funds investments consisted of $0.5 billion in 2021 alone, with a notable amount being raised in November and December due to the changes to the program. Considering the significance of this sum — with the majority of affluent investors hailing from the USA and UK — fund managers can no longer ignore this heightened demand in international investments. Overall, fund managers must think of how to accommodate foreign investors when structuring the funds.
What does this mean for the Golden Visa investor?
As an investor, you’ll have a breadth of fund options available, which are relatively well-capitalized by now. Also, as the industry further develops in Portugal, the investment funds and respective managing firms are more prepared to undertake your subscription and investment, ultimately resulting in a more streamlined, fruitful process.
Which type of funds do our clients prefer?
No two clients are the same. Some of our clients have a risk-reward investor profile, with significant budgets and wealth assets, while others are starting out in their investment journeys.
Having said this, we have noticed a trend in seasoned real estate investors who come to us looking for funds with exposure to different sectors of the economy, such as healthcare, technology, and sustainable projects. However, for respective investors who would like exposure to the real estate sector, there are also many options available, with each fund focusing on a particular segment — whether that’s residential, commercial, agricultural, or hospitality. One of the most attractive aspects here is that investors can diversify between multiple funds across various segments, leading to a well-balanced portfolio when investing for Golden Visa purposes.
Final say
Ultimately, the most recent Golden Visa developments have led to an unquestionable rise in popularity of the Portuguese private equity and venture capital industry, as well as strong capitalization of several of these funds. It is forecasted that investors will start deploying their capital to purchase assets in what we hope will be at the end of the COVID-19 pandemic period.
How can we help?
We’re Global Citizen Solutions, a boutique investment migration consultancy firm, offering second residency and citizenship by investment solutions for international families looking to enhance their freedoms, invest abroad, and/or relocate. Our team offers a bespoke end-to-end service to guide clients every step of their journey to securing the Portugal Golden Visa. Contact us for more information.
