Purtuguese legislation doesn’t make any clear difference between venture & private equity capital; hence, one can use them interchangeably. If it isn’t specified otherwise, "private equity" can stand for operations involving equity & venture capital management.
Those seeking to establish a Portuguese PEF can choose from 2 legal regimes:
- for companies which assets have been acquired by using borrowed capital (mustn’t exceed one hundred or five hundred million euros) & which don’t provide their investors with a buyout right during the initial 60-month period;
- for companies which assets aren’t subject to Directive twenty eleven slash sixty one.
If the establishing of a PEF in Portugal is regulated by EU legislation, more stringent requirements are set for:
- obtaining permits & applying for registration;
- internal organization;
- preventing a conflict of interests;
- management or disclosure of information;
- managing risks;
- assessment rules;
- delegating & sub-delegating functions to 3rd parties.
Over the recent years, PEFs have been responsible for an increase in foreign deposits in Portugal, making it a very attractive jurisdiction for establishing an investment fund in the EU. Most investors are legal entities (eighty two percent); however, the number of physical persons investing in the local economy is also on the increase.
Legal Forms & Investment Types
FDI mechanisms can be different & depend on whether or not they fall under the scope of AIFMD. Please note that activities undertaken by investment funds aren’t deemed financial mediation.
Registering an LLC in the Republic of Portugal: Things to Remember
Opening an LLC in Portugal requires getting a share capital of no less than one hundred twenty five thousand euros. Registering this kind of enterprise provides its founder with:
- direct ownership rights over investment portfolios;
- a right to manage PEFs’ funds;
- a right to do both.
Registering a PEF in Portugal
PEFs get managed by organizations which aren’t allowed to exceed a threshold set by the AIFM. PEFs aren’t responsible for their investors & managers’ debts; nor do they bear any responsibility for deposits & marketing. The amount of capital owned by PEFs must be no less than one million euros.
Looking to set up a PEF in Portugal? Need advice on fund regulation in Portugal? Why not contact IQ Decision UK?