GOLDEN VISA - WHAT'S NEW IN 2022?

Fund Snapshot

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 fund promoter Arturo Gonzalez, partner of Impacto Capital, Real Estate Advisor for The Impacto Fund.

Could you please start by giving us some background about yourself and the team working on Impacto Fund?

Stag Fund Management is a Portuguese Fund Management Company, part of the wider Dixcart Group, a wealth advisor based in the UK with more than 45 years of experience. Currently, with 6 Venture Capital Funds under management, STAG is led by an experienced team with a banking and consultancy background and has a policy of only accepting bespoke venture capital funds investing in cutting-edge, state-of-the-art projects aiming to deliver constant returns to their investors.

Impacto Capital is a Real Estate developer with over 10 years of experience in real estate with a portfolio of over EUR250MM in Portugal, the United States, Colombia, and Brazil. Impacto Capital has 8 years of experience in the Portuguese market with 7 projects completed and sold with equity multiples above 2x. Currently, Impacto has 4 projects in the pipeline which are all available for the Fund to invest in. With these projects around 40% of the EUR25.5MM will be invested.

We are aware that Impacto Capital has been developing real estate in Portugal for some time. Why did you decide to create The Impacto Fund?

The creation of the Fund was a natural evolution to the company. It was something that the company had considered in the past, and recent changes in the Golden Visa Program have only expedited this process.

Has the management/advisory team invested in Portugal 88 Investment Fund and, if so why? If not, why not?

The Advisory Team has invested equity into the Fund. We believe it is important to show “skin in the game” to potential investors.

Particle element
Particle element

Request a detailed presentation about the fund

Min investment: €350,000 · Lifetime: 8 years · US Citizens: OK! 👍🏽· Subscription deadline: February 2023 🗓️
The Impacto Fund’s chosen investment profile is real estate development within the residential, touristic, and student accommodation sectors. Could you please explain your thought process behind selecting these individual sectors and this blend in particular?

The fund investment structure and strategy is capital preservation and we will accomplish this through:

  1. Investment in debt structures vs. equity structures which we will dig deeper in a question below and;
  2. Diversification of the investment through different asset classes / different locations / and different development stages.

Point 2 above answers the questions, we chose these sectors to achieve diversification for the Investors.

How would you describe The Impacto Fund’s risk profile: Conservative, Moderate, or Ambitious?

Conservative

The Golden Visa rules state that a qualifying investment must be held for just five years but The Impacto Fund’s lifetime runs for longer. Could you please explain the fund’s lifetime including the launch date and subscription period?

In reality, the GV process takes longer than just five years. The more realistic time is around 6 years, which coincides with the investment period of the fund. When the Fund finishes the 6-year investment round, the Fund will have 2 years to divest and consequently return the money to the investors.

On average, how long does it take to onboard an investor into The Impacto Fund and what are the main obstacles in the onboarding process?

On average the process takes 30 days. The process is quite streamlined, and we have a guideline that we pass to our investors on how to proceed.

In general, some investors are cautious because of the fund’s lock-in periods. How do you plan to deal with investors who wish to exit The Impacto Fund before its full lifetime?

The client is free to exit the fund at any time and sell its shares in the secondary market.

It seems that most Golden Visa funds in Portugal are focused on real estate. What distinguishes The Impacto Fund from the others?

The Impacto Fund focuses on Capital Preservation vs. Capital Appreciation.

This strategy will be accomplished through:

  1. Investment in debt structures vs. equity structures
  2. Diversification of the investment through different asset classes / different locations / and different development stages.

Furthermore, on point 1 above, by investing a higher percentage of the funds in debt structures, the fund will accomplish:

  1. Priority on cashflow distribution from the project it invests on
  2. Interest payments
  3. Real Estate Collateral to back up the loan

A question our Investors often ask is:

“What happens if your projections drop by 10%,20%, or 30%?”

In our case, if this were to happen, we are confident our investors will get their money back plus the 3% per year. We like to say that The Impacto Fund value proposition shines in tough times!!!!

Particle element
Particle element

Contact Arturo Gonzalez from The Impacto Fund now

Min investment: €350,000 · Lifetime: 8 years · US Citizens: OK! 👍🏽· Subscription deadline: February 2023 🗓️
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?

These are two different types of investment. Funds are hands-off, standardized, heavily regulated, transparent investment vehicles that allow clients to apply for the golden visa. Real Estate investments require more time and effort as there are many more variables to consider (Location / Price / Type of Asset / Sun Exposure / Etc…)

When you are out of your comfort area, in a different country, our advice is to invest in products that promote the security of investment because ultimately this is an immigration play and the investment is just a vehicle.

For people who are unfamiliar with investing in funds and may even be nervous about learning, what advice would you like to give them?

Get a great lawyer! The lawyer is a fundamental piece for the success of the process. The lawyer will guide you through all the details of the Golden Visa and of the Fund as an Investment Vehicle.

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?

Invest now while you can still get your Golden Visa for €350,000.

What is your outlook for Portugal from both an investment and lifestyle perspective over the coming years?

We strongly believe in the fundamentals of the Portuguese economy, particularly the Real Estate Market.

Since 2012, we have seen a steady improvement in the fundamentals of the real estate market including:

  1. Strong GDP growth (besides the COVID years),
  2. The resilience of the Real Estate Market during COVID,
  3. Low interest rates,
  4. Steady increase demand from the international market,
  5. Increase interest of institutional investors that never looked at Portugal as an investment destination before,
  6. Changes in the regulatory framework, at a national level and a local level, to incentivize investment.

This gives us a good perspective that real estate is a solid asset class with a good outlook for the future.

From a lifestyle point of view, I will only say that is not for nothing that they call Portugal the California of Europe!!!

Particle element
Particle element

Sounds good! I'd like to get in touch now!

Min investment: €350,000 · Lifetime: 8 years · US Citizens: OK! 👍🏽· Subscription deadline: February 2023 🗓️