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 interviewed Faisel Butt and Duarte Costa from Grosvenor House of Investments to find out more about Golden Caravel Fund.
Could you please start by giving us some background about yourself and the team working on Golden Caravel Fund, particularly the role of Square Asset Management?
Our Mangement team has participated in the setup and management of several real estate funds with Core commercial focus in Square AM.
We’ve partnered with Square Asset Management team as they have a unique 30+ years track-record in Portugal with an accumulated AuM of 4+ Bn€.
Why did you decide to create Golden Caravel Fund?
Due to an huge increase of investors (HMWIs) requesting us to set up a Golden Visa eligible Fund targeting capital preservation with Core non-residential Real Estate as an underlined portfolio.
Has the management/advisory team invested in Golden Caravel Fund?
Yes, we have “skin in the game” equivalent to 5% of total investments in the Fund.
We know that Square AM is one of Portugal’s leading asset managers and we also know that the Portuguese real estate market has become an increasingly attractive space for investment but could you please talk us through how the fund will actually operate and how Square AM will be investing your clients’ money? Will Golden Caravel be purchasing assets that are already under Square AM’s management or will they be searching the market for new opportunities?
Jointly, we have the local knowledge and experience about the market and previous deals as well as first-hand access to off-market opportunities. On a regular basis, we have an average of 150M€ pipeline to screen potential assets to onboard, with fair pricing and long-term lease contracts with good tenant ratings.
With this strategy, we make sure we protect Fund’s capital against potential downsize as well as guaranteeing a smooth exit in order assured performance and liquidity on time to investors.
Golden Caravel Fund is focused on yielding real estate assets, particularly offices, retail, hospitality, and distribution logistics. Please explain your thought process behind this decision.
Yes, as “negative” screening we chose not to invest in residential due to the volatility and liquidity of the market for an effective risk dispersion.
Secondly, both teams have the necessary expertise and track-record on managing Core commercial real estate with a tenant risk focus to assure steady income and successful exit.
How would you describe the Golden Caravel Fund’s risk profile; Conservative, Moderate, or Ambitious?
The Golden Visa rules state that a qualifying investment must be held for just five years but the Golden Caravel Fund’s lifetime runs for longer. Could you please the fund’s lifetime including the launch date and subscription period?
Although GCF has a 10Y maturity, investors will keep their investment for only 6 years. The fund started its activity in June 2021 and the subscription period will go till December 2023.
On average, how long does it take to onboard a Golden Visa investor into the Golden
Caravel Fund and what are the main obstacles in the onboarding process?
We do not anticipate any obstacles for investors to be onboarded. This process takes 4~5 business days on average.
In general, some Golden Visa investors are cautious because of the funds’ lock-in
periods. How do you plan to deal with Golden Visa investors who wish to exit the fund before its full lifetime?
GCF Management Regulation clauses clearly mention that investors will redeem on year 6 of their investment.
Contact Faisel Butt and Duarte Costa from Grosvenor House of Investments from Golden Caravel Fund nowMin investment: €350,000 · Lifetime: 10 years · US Citizens: OK! 👍🏽· Subscription deadline: December 2023 🗓️
It seems that most Golden Visa funds in Portugal are focused on real estate. What
distinguishes yours from the others?
Our partnership with Square AM and both management teams with unique track-record in Portugal; Local network and access to off-market investment opportunities; permanent pipeline with long-term incoming provided by 1st tier tenants.
Many of those considering the Golden Visa are currently comparing funds vs real estate. What advice can you offer to help investors make the right decision for them?
Funds do provide a unique way to guarantee a good Risk dispersion and assure liquidity for exit by investing in a portfolio and not in a single asset. Also, those portfolios are managed by professional teams that are supervised by the local regulator (CMVM) as well as the Fund as an investment vehicle structure.
For people who are unfamiliar with investing in funds and may even be nervous about learning, what advice would you like to give them?
Funds in Portugal are approved and regulated by the EU standardized supervisor (CMVM).
Also, the management teams are permanently screened by the regulated. Overall, the fund industry is a very controlled ecosystem in Portugal in line with EU directives.
Considering the incoming Golden Visa rule changes on January 1st 2022, what advice would you give to investors who are currently looking into the program?
To take the advantage of investing the minimum amount of €350k instead of €500k (minimum investment from 2022 onwards).
What is your outlook for Portugal from both an investment and lifestyle perspective over the coming years?
The fundamentals of a sustainable economy, as well as stable political and social
ecosystems, provide Portugal to be a unique jurisdiction to have a 2nd citizenship or actually live in the country.