Oxy Mercúrio Fund
Investment Sector
Agriculture
Investment Profile
Mature SMEs/Mid-Caps
Minimum Investment
€100,000
Subscription Deadline
December 2024
Fund Lifetime
7 years
Open to US Citizens
Yes
Fund Manager
Oxy Captial
CMVM License Number
1851
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 Guilherme Valadares Carreiro to find out more about Oxy Capital’s Mercúrio Fund.
Oxy Capital is an investment firm established in 2012 in Lisbon. At present, our dedicated team comprises more than 25 professionals committed to managing funds across various strategies. These strategies encompass growth/buyout, restructuring, real estate, and public markets. As a firm, Oxy Capital not only manages proprietary funds but also claims a robust track record. Over the years, we have successfully invested in over 70 companies and executed over 40 exits, demonstrating our expertise in Private equity sector.Oxy Capital is not affiliated with real estate brokers, law firms, corporates or any other entities and have no third parties involved in our investment management decisions.
Why did you decide to create the Mercúrio Fund for the Golden Visa market?
In 2021, we made the strategic decision to enter on the Golden Visa market through the launch of the Vesta Fund, a Real Estate-focused fund. Our rationale was rooted in the belief that Golden Visa investors choosing to invest in Portugal would prefer to align themselves with the foremost investment firm in the country, namely Oxy Capital.
Building on this premise, in June 2023, we launched the Mercurio Fund, capitalizing on our extensive expertise. This fund centers its investments in mature companies across sectors such as Industrial, Healthcare, Services & Retail, and others.
Recognizing the inclination of Golden Visa investors toward a more conservative approach with an adjusted risk/return profile, the Mercurio Fund strategically focuses on flexible Debt/Equity instruments. This approach aims to offer attractive returns while prioritizing mechanisms for downside protection.
Has the management/advisory team at Oxy Capital invested in the Mercúrio Fund? Please explain that decision.
Oxy Capital and the Team will invest 10% of the Fund’s capital as of Dec-23, following the usual commitment to our previous funds. We believe this is the unique way to undoubtedly align the interests of all stakeholders.
Request a detailed presentation about the fund
· Min investment:
€100,000
· Lifetime:
7 years
· US Citizens:
Yes
· Subscription deadline:
December 2024
The Mercúrio Fund focuses on capitalization, growth & acquisition opportunities of mature SMEs and Mid-Caps in the Portuguese market. Could you please explain why you’ve chosen this particular investment strategy and give some examples of recent acquisitions?
The Mercúrio Fund adopts its investment focus on the capitalization, growth, and acquisition opportunities of mature SMEs and Mid-Caps within the Portuguese market for several compelling reasons:
Proven Expertise:
Oxy Capital brings substantial experience to this strategy, having successfully invested in over 70 SMEs and Mid-Caps during the past decade, yielding attractive returns.
Market Dynamics:The upheaval caused by the Covid-19 Pandemic, coupled with geopolitical tensions such as the UA/RU conflict, has created economic turbulence affecting even companies with robust business models. This economic context has put pressure on companies' financial health and liquidity, creating opportune moments for strategic investments.
Market Consolidation Potential:With SMEs constituting over 98% of the total number of companies, there exists a significant opportunity to consolidate the market and enhance overall productivity. This sector, particularly impacted by recent global events, offers unique prospects for growth and expansion.
In light of these factors, we view the current macroeconomic environment as a distinctive and opportune moment to invest in companies affected by recent challenges, yet possessing sustainable and resilient business models with projected growth.
How would you describe the Mercúrio Fund’s risk profile; Conservative, Moderate, or Ambitious?
The Mercurio Fund can be considered as Moderate. As mentioned before the Fund will favor downside protection through investment in flexible Debt and Equity instruments while targeting interesting returns.
The Golden Visa rules state that a qualifying investment must be held for just five years but the Mercúrio Fund’s lifetime runs for longer. Could you please explain your fund lifetime and subscription period/fees?
Mercurio will be available for subscription until Dec-24. The Fund will be invested until Dec-25 and the term will be on Dec-30 (with the possibility of extension upon general assembly approval). Regarding the fees, for subscriptions until the end of 2023, there are no subscription fees.
On average, how long does it take to onboard a Golden Visa investor into the Mercúrio Fund and what are the main obstacles in the onboarding process?
Our investor onboarding procedure ensures a smooth and efficient experience. Investors have the convenience of completing the entire process remotely in collaboration with our compliance and investment team. With the continuous support and guidance from our onboarding team, the process typically concludes within less than a week.
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 the Mercúrio Fund before its full lifetime?
The Fund does not offer the option for early redemption – this is a standard characteristic shared by all Private Equity funds, not specific to the Mercurio. In the secondary market it is feasible to sell the participation units of the Fund, but the investor is responsible for identifying a willing buyer to do so.
What distinguishes the Mercúrio Fund from other Golden Visa-eligible funds operating in the market?
Strong Track record from Oxy Capital: Oxy Capital has been in the sector since 2012, and right now is the leading investment firm in Portugal. Invested in more than 70 SME’s and Mid-Caps over the last decade with attractive returns;
Strong investor base from Oxy Capital: Investors in Oxy Capital’ Funds range from International institutional investors, Pension Funds, Family offices, HNWI and other private investors;
Oxy Capital and the Team will invest 10% of the Fund as of Dec-23: aligning the interest of all investors – “Skin in the game“;
Non-Golden Visa investors will invest >70% of the Fund (as of Dec-23) –Professional investors are willing to invest the majority of the Fund without the Golden Visa perk, believing the Fund is an interesting financial investment.
Get in touch with
Oxy Mercúrio Fund
now!
· Min investment:
€100,000
· Lifetime:
7 years
· US Citizens:
Yes
· Subscription deadline:
December 2024
Many of those considering the Golden Visa have several funds to choose from. What advice can you offer to help investors make the right decision for them?
When considering various Golden Visa investment options, my guidance would be to prioritize the following factors:
Track Record: Opt for teams with a proven and robust track record in the field.
Non-Golden Visa Investors within the Fund: This aspect attests to the potential quality of the product. The presence of professional investors willing to invest without the Golden Visa incentive signifies the Fund's appeal as a sound financial investment.
Capital Invested by the Management Company: Look for a "Skin in the game" commitment from the management company, as their financial involvement demonstrates a shared commitment to the Fund's success.
Personal Preference on Risk/Return Ratio: Consider your individual risk tolerance and desired return on investment, aligning with your specific financial goals.
These considerations can serve as valuable benchmarks to aid investors in making informed decisions tailored to their unique preferences and objectives.
For people who are unfamiliar with investing in funds and may even be nervous about learning, what advice would you like to give them?
For individuals unfamiliar with fund investments and perhaps feeling apprehensive about delving into the process, I offer the following advice:
Take Your Time: Don't rush the decision-making process. Take the necessary time to thoroughly research and find the fund that aligns best with your financial goals.
Ask Questions: Don't hesitate to ask questions and seek clarification about how funds operate and the fund manager track record. Understanding the mechanics of funds is essential for making informed investment decisions.
Seek Professional Guidance: Engage professional advisors and legal experts who can provide valuable insights. They can help you comprehend the nuances of different funds available in the market and offer personalized advice based on your unique financial situation.
By following these steps, you can navigate the world of fund investments with confidence and make choices that align with your financial objectives.
Considering the recent Golden Visa rule changes in October 2023, what advice would you give to investors who are currently looking into the program?
In light of the recent Golden Visa rule changes in October 2023, my advice to investors currently exploring the program is to collaboratively assess, alongside legal professionals, the eligibility criteria of the Fund. Consulting with legal experts will provide clarity and ensure that investors make informed decisions aligned with the revised regulations of exclusion of Real Estate investments.
What is your outlook for Portugal from both an investment and lifestyle perspective over the coming years?
Anticipating the years ahead, our perspective on Portugal remains positive, encompassing both investment and lifestyle considerations.
Investment Outlook: Portugal continues to offer compelling investment prospects, particularly in sectors such as industrial, technology, and energy. The nation's steady economic growth, coupled with government initiatives and scarce access to capital to companies, creates an advantageous environment for investors seeking sustainable returns.
Lifestyle Prospects: Portugal's enduring appeal as a sought-after lifestyle destination is expected to persist. Boasting a rich cultural heritage, picturesque landscapes, and a warm atmosphere, Portugal remains an attractive place to reside. The quality of life, favorable climate, and diverse recreational offerings contribute to its allure for residents and expatriates alike.
In summary, our outlook foresees Portugal maintaining its appeal as an attractive destination, both in terms of investment opportunities and as a desirable place to live.
Is there anything else you would like to share with potential investors?
We are committed to provide potential investors with all the necessary information for a well-informed investment decision. Our team is readily available to have call with any potential investor to go through Oxy Capital’s Track record and the Mercurio Fund details.
Sounds good! I'd like to get in touch now!
· Min investment:
€100,000
· Lifetime:
7 years
· US Citizens:
Yes
· Subscription deadline:
