New Frontiers Energy Fund
Investment Sector
Renewable Energy
Investment Profile
Solar installations & Development
Minimum Investment
€50,000
Subscription Deadline
August 2024
Fund Lifetime
8 years
Open to US Citizens
Yes
Fund Manager
Fundbox
CMVM License Number
40782
Q&A
Each fund manager or fund advisor has been invited to answer a series of questions about their own funds as well as the market in general.
We sat down with David Russell to find out more about theNew Frontiers Energy Fund.
My name is David Russell and I am one of the advisors to New Frontiers. New Frontiers has an excellent origination team headed by Noel Shannon of Shannon Energy. Noel has many years of experience working all over the world, identifying early-stage solar projects which can be developed through to ready to build stage and sold for a significant profit within a few years. New Frontiers is fully compliant with the new rules surrounding golden visa and we are fully CMVM regulated in Portugal, which is the highest level of regulation a golden visa fund can have.
Why did you decide to create the New Frontiers Energy Fund?
New Frontiers was established in order to invest into the strong solar energy market in Portugal. Portugal has fantastic year round sunshine, large swathes of farmland which are unsuitable for growing crops or hosting animals, thus perfect for solar panels. The government is also very aligned and supportive of solar expansion, thus NFEF sees Portugal as the perfect country for solar investment and where to launch this exciting fund.
Has the management/advisory team invested in the New Frontiers Energy Fund? Please explain that decision.
Yes, members of the team are themselves personally invested. I would also draw people’s attention to the high 10% hurdle rate which is required for a profit share. This should illustrate the belief the team has in the returns the fund will generate in years to come. We also have one of the lowest management fees out there.
Request a detailed presentation about the fund
· Min investment:
€50,000
· Lifetime:
8 years
· US Citizens:
Yes
· Subscription deadline:
August 2024
The New Frontiers Energy Fund is a renewable energy fund with a specific focus on installing and developing solar power facilities. Please explain your thought process behind this decision.
There is often a funding gap that exists in early-stage solar projects and developing them to the ready-to-build stage. That being said, the value of a solar project will increase the most during this time, thus it is worth the time and money to achieve. The Portuguese government also created the Acordo list of projects that have been guaranteed grid connection at some point in the future. It is from this list that we will initially select projects to invest into.
How would you describe the New Frontiers Energy Fund’s risk profile; Conservative, Moderate, or Ambitious?
New Frontiers has a fairly conservative-moderate risk profile. The projects we invest into have been significantly de-risked by the time we get involved. Much of the risk in a project comes from the initial 1-2 years. In addition to the entry point, the fund aims to exit once the site is ready-to-build (RTB), therefore incurring no further construction risk or further costs of building out the site.
The Golden Visa rules state that a qualifying investment must be held for just five years but the New Frontiers Energy Fund lifetime runs for longer. Could you please explain your fund lifetime including the launch date and subscription period?
The Fund was incepted in April 2023 and has an 8-year term. As the Golden Visa rules specify, a 5-year subscription is mandatory for any eligible fund. However, this clock will not potentially begin ticking for 18month-2 years after paperwork is completed for the golden visa and your fund investment begins. The good news is that your money will be invested in the fund and given the potential to grow, it is just that this period will not count towards the 5-year golden visa term until your initial permit is granted.
On average, how long does it take to onboard a Golden Visa investor into the New Frontiers Energy Fund and what are the main obstacles in the onboarding process?
Thankfully, we have Fundbox to lean on for the onboarding process, one of the biggest names in the golden visa investment space. We are confident onboarding will be smooth and efficient. We would believe 2-4 weeks. As long as the client returns the required paperwork in a timely manner, we don’t foresee many obstacles.
In general, some Golden Visa investors are cautious because of the funds' lock-in periods. How do you plan to deal with investors who wish to exit New Frontiers Energy Fund before its full lifetime?
Unfortunately the fund’s investment strategy does not lend itself to early exit.
What distinguishes the New Frontiers Energy Fund from other Golden Visa-eligible funds operating in the market?
New Frontiers is unique within the Golden Visa program. It is the only fund investing exclusively in solar energy projects held under the Accordo List. This niche is highly lucrative in a country like Portugal, where the elements and the government are very much on-side with our plans.
Get in touch with
New Frontiers Energy Fund
now!
· Min investment:
€50,000
· Lifetime:
8 years
· US Citizens:
Yes
· Subscription deadline:
August 2024
Many of those considering the Golden Visa have a number of funds to choose from. What advice can you offer to help investors make the right decision for them?
Always ensure it is a regulated fund and eligible fund you are investing in. Some investors may look to diversify among two or three funds. If one of these funds falls out of the eligibility criteria, the entire investment will not qualify your application for a Golden Visa. As with any investment, ensure your fund of choice has longevity in the market they operate in. Many Golden Visa funds are newly established, and so this measure is best understood by looking at the experience of the team on board and the synergies they bring.
Considering the recent Golden Visa rule changes in October 2023, what advice would you give to investors who are currently looking into the program?
With the recent rule changes, investors should ensure any fund they are considering has no exposure to the real estate market. Seeking professional investment or legal advice will ensure you are presented with the options that best suit your preferences, and are eligible for the program.
What is your outlook for Portugal from both an investment and lifestyle perspective over the coming years?
I see Portugal continuing to flourish in both investment and lifestyle. Ranking 12th out of 190 in healthcare system, 1st out of 180 in friendliest and welcoming, 4th out of 49 in renewable energies, to name a few. It is clear to see that Portugal is; and will continue to be, an excellent second home for people all over the globe.
Is there anything else you would like to share with potential investors?
If you don’t know, ask. Professional advice is always on hand to help guide you through the process of Golden Visa application. We here at New Frontiers are happy to engage in further discussions on the fund and answer any queries you may have.
Sounds good! I'd like to get in touch now!
· Min investment:
€50,000
· Lifetime:
8 years
· US Citizens:
Yes
· Subscription deadline:
