Portugal's Private Equity Sector Booms With New Investments, Fundraising
Portugal's private equity sector is witnessing a resurgence, driven by factors such as the Portugal Golden Visa program and robust economic growth. This revival has seen increased fundraising and a shift in investment focus.
The resurgence of private equity in Portugal is marked by two key trends. Firstly, the Portugal Golden Visa program has attracted new investors, with the government lowering the investment amount to €350,000 for investment funds in 2018. This has led to a rise in funds focusing on tourism, hospitality, and tech startups, notably the Mercan Group's private equity hospitality fund investing in high-end hotel projects. Secondly, there's a growing trend of new funds being formed in collaboration with international private equity managers, drawn by Portugal's regulatory environment and shift towards equity investments in companies rather than real estate. This trend is expected to continue, with foreign investors, particularly from the US and Europe, driving new fund creation and partnerships.
Private equity funds in Portugal are typically managed by Portuguese-based management firms and are exempt from taxes, with varying tax frameworks for different types of investors. These funds are closed-end, not traded on public stock exchanges, and allow high-net-worth individuals and institutions to invest directly in and obtain equity ownership in firms. They charge both management and performance fees, with limited partners responsible for their entire investment and general partners liable to the market.
Portugal's private equity sector is thriving, with increased fundraising and a shift in investment focus towards tech startups, hospitality, and tourism. This trend is expected to continue, driven by foreign investors and the appeal of Portugal's regulatory environment. Despite the changes, private equity funds remain closed-end, exempt from taxes, and allow direct equity ownership in firms.
Read also:
- Mars Petcare Opens Gold-LEED Certified Center, Aims for Carbon Neutrality by 2040
- Planned construction of enclosures within Görlitzer Park faces delays
- Controversy resurfaces following the elimination of diesel filter systems at Neckartor: A renewed conflict over the diesel restriction policy
- Perennial Seeks Growth Marketing & GTM Associate for Carbon Removal Mission
