Introduction
The Portugal Prime Fund is a GV-eligible fund that invests in prime hospitality hotel operations in Portugal. It offers investors solid returns and the opportunity to exit their investment with asset-backed protection The hospitality sector enjoys a strong and steady growth in Portugal, far surpassing stock market returns. The investments made in hospitality sector appreciated 5-10% with 75% occupancy rates. Portugal has a strong pipeline of large hospitality projects in prime locations.
The hospitality industry is a service industry that operates in real estate assets, should not be confused with real estate industry. The hospitality industry caters to different areas that provide services to customers, including food and beverage, technology, lodging, travel, and entertainment.
Golden Visa Eligible
- Eligible for Portugal Golden visa
- CMVM approved fund.
- Low risk and low fees in the market.
- Financing option available.
- Eligible for Portuguese PR and Citizenship.
Portugal Prime Fund
Portugal Prime Fund is a low risk, Golden Visa-eligible fund that invests in prime hospitality operations, offering investors solid returns and the opportunity to exit their investment with asset-backed protection. The fund invests in hospitality, tourism, and healthcare sectors, with at least 60% allocated to Portugal-based companies that do not engage in real estate activities.
Minimum Investment
We offer two investment options with this fund.
- Financing option – €300,000 (instead of 500k). Capital recoverable, no returns paid to investor.
- Equity – €500,000 (full investment). 10% IRR returns. Capital recoverable.
Secured Loans
Portugal Prime Fund invests in operating companies with no real assets on their balance sheets. These companies provide secured loans to property owners in exchange for operating leases and equip the properties with the equipment, fixtures, and furnitures to operate.. Our secured loan approach safeguards investors by using real estate assets as collateral, with loans backed by hotel properties. The hotel operator does not own the assets, keeping them off the balance sheet and ensuring full compliance with GV regulations.
Prime Fund Summary
- Fund: Closed-End Private Equity Fund regulated by CMVM
- CMVM Approval: Authorized
- Fund size: €100 million
- Minimum subscription: €100,000 (€300,000 required for Golden Visa)
- Custodian: Bison Bank
- Auditor: BDO
- Fund Term: 8 years
- Subscription period: 2 years
- Subscription fee: 0%
- Management fee: 0.20%
- Target Return: 10%
- Risk: Low (3/7)
Portugal Prime fund aligns with the golden visa fund regulations:
- Avoids direct or indirect investments in real estate, with invested companies holding no real estate assets on their balance sheets
- Allocates at least 60% of investments to Portuguese entities and has an 8-year maturity, exceeding the 5-year minimum requirement
- Is incorporated under Portuguese law, supervised by the Portuguese regulator (CMVM), and managed by a licensed fund manager with over 20 years of market presence
Additional Fees
- AIMA Fee – 6000€ per person (first year)
- Legal Fee – 8000€ covers 5 years
Please use our Portugal GV calculator.
Low Risk Fund
Portugal Prime carries a low risk indicator of 3, unlike most funds that carry risk levels of 6. The risk indicator is a standardized metric used in European mar ̈ets to convey the level of risk associated with investing in a particular fund, rated on a scale from 1 (low risk) to 7 (high risk): This is achieved by
- Invested in a strong sector and provide predictable cash flows
- The Fund structure investments as secured loans with prime hospitality assets as collateral
- Fund providing investors with a put option for early exits
Rate of Return
The fund target a 10% internal rate of return (IRR) on invested capital, net of fund fees, over the fund’s maturity:
- 5% of average annual yield dividends from hotel operations, which start after three years
- 5% of average annual capital appreciation of hotel operations and assets
Fund Fees
The Portugal Prime Fund is attractive for investors with low fees. There is no subscription fee, and our management fee is the lowest in the market at just 0.20% — only 1/10th of the typical 2% charged by most funds.
- Subscription Fee – 0%
- Management fee – 0.20%
- Performance fee – 25%
- Hurdle rate – 5%
Exit Strategy
Investors have the possibility to exit the fund before maturity through a put option, allowing them to recover their invested capital plus a fixed 2% annual return. Exiting after 6 years or in the event of Golden Visa rejection ensures a full return of the capital. For early exits, an early redemption fee applies, and 80% of the capital is returned. The put option is signed upfront, granting investors the right (but not the obligation) to sell their fund participation units whenever they choose, providing flexibility and security for early exits or in case of unforeseen circumstances.
