Optylon Krea
Sponsor
Hakan Kodal, President of Optylon Krea, shared his predictions with IMI in 2019 and again in 2021 about the new Golden Visa eligibility route through venture capital funds.
He was absolutely right and correctly predicted the future of the Portugal Golden Visa program.
Optylon Krea, the first company to launch a Golden Visa eligible fund in 2018, went through the different changes introduced by the law for Golden Visa in Portugal. Today, Optylon Krea is the market leader in fund advisory, having raised a total of €185 million in capital from 600 Golden Visa investors from 40 countries.
Until 2023, you could apply for the Portuguese Golden Visa by investing in residential or commercial real estate in Portugal. However, due to rising property prices, the government radically ended this Golden Visa route related to the real estate sector and started allowing investments only through venture capital funds.
These funds must be non-real estate funds directly or indirectly related to and regulated by the Portuguese capital market board, the Furniture Securities Market Commission (CMVM).
This time we have asked Hakan Kodal to share his experiences and valuable insights on choosing the right mutual funds.
Crucial tips from an expert
Before analyzing any venture capital fund alternative in detail, here are three essential questions to consider:
Funds are serious business – seek professional help
Advising on venture capital funds is a serious and regulated business that should be carried out by financial advisors and not pure Golden Visa advisors.
As a Golden Visa investor, your motivation may not be return on investment. Make sure you are in good hands and do your research independently.
Ideally, your financial advisor will identify which funds are suitable for you and match your risk profile.
Make sure the fund does not invest in real estate
Please ensure that the fund does not directly or indirectly own or invest in real estate, as the law clearly states that it is no longer eligible for the Golden Visa. You may risk losing your Golden Visa in the future.
Avoid buyback options
You may hear that venture capital funds offer so-called buyback options or guarantees, but they do not align with the regulations of the Portuguese capital market board (CMVM).
These schemes aim to attract unsophisticated Golden Visa investors, and are typically advised on by intermediaries seeking higher commissions rather than protecting the interests of their clients. Be careful when choosing who to work with and make sure they have your best interests in mind.
Remember, as long as there is no bank guarantee, there is no guarantee.
The Investor Checklist
Once this is clear and you are serious about investing in a venture capital fund, here is a detailed checklist to help you choose the right one for you:
- Is the fund managed by investment managers or advisors who have a proven track record, ideally both in Portugal and outside Portugal?
- Does the fund management team have solid experience in the sector in which it invests?
- Does the fund presentation include enough objective data about the industry and investments to verify the validity of the assumptions?
- Does the fund’s strategy consider possible economic crises and does it have contingencies for such cases?
- What are the fund’s underlying investments? Are they risky? What is your risk tolerance in such cases?
- What is the fund’s exit strategy and how realistic is it?
- Is there an alignment of interests between investment managers/advisors and fund investors?
- Have there been Golden Visa approvals for the current fund or for a previous fund overseen by the same team?
- Is the fund audited by an accredited audit company?
- Compare different costs such as fund management costs, setup fees and subscription fees.
- Diversification is an essential investment element, so make sure the fund has a diversified portfolio. To qualify for the Golden Visa, you can also choose to invest in two or three venture capital funds.
Finally, I must say that the Ando Europe Fund, managed by Stag Asset Managers and advised by Optylon Krea, is without a doubt one of the best options on the market. So please consider it and challenge us; We will be happy to answer all your questions.
About the Author:
Hakan Kodal (founding partner and president of Optylon Krea)
With over three decades of experience in real estate investment and development, Hakan Kodal stands as a respected leader in both industries, highlighted by his tenure as founding president of real estate organizations in Türkiye, including GYODER and AYD.
In 2006, he founded Krea Real Estate in partnership with Merrill Lynch. 2016 Hakan partnered with Charles and William and founded Optylon Krea, which quickly grew into a pan-Mediterranean real estate development and investment management company.
The three partners founded Ando Living in 2019, a perfect combination of Hakan’s extensive experience in branded residences and William and Charles’ considerable track record in serviced apartments.
Optylon Krea
The company was formed between Krea Real Estate and Optylon Capital to develop a pan-Mediterranean real estate and investment management presence. The association’s combined track record exceeds €1.8 billion in investments in Portugal, Türkiye and Spain.
Optylon Krea advises five investment funds regulated by the capital market board CMVM.
For more information on investment funds advised by OPTYLON KREA and the Portuguese Golden Visa investment option, please contact our advisors at [email protected] and visit www.optylonkrea.com
