Explorer IV Fund Shareholders Thread

Creating this thread for shareholders of the Explorer IV fund to discuss anything related to the fund. Explorer Investments is Portugal's leading Private Equity firm

Most relevant now is the upcoming shareholders meeting on December 3 in which 5 proposed changes will be voted on:

  • Item One: To resolve on the amendment of the term as from which the Fund may redeem the Class C Participation Units in accordance with the attached proposal;
  • Item Two: To resolve on the creation of three new classes of Participation Units in accordance with the attached proposal;
  • Item Three: To resolve on the amendment of paragraph 1 of article 3 (Capital of the Fund), of article 5-A (Class C Units), of paragraphs 4 and 7 of article 9 (Participation Units), of paragraph 1 of article 28 (Value of the Units) and of paragraph 3 of article 29 (Capital Reimbursement and Fund Income Distribution Policy) of the Rules and Regulations, in accordance with the terms of the attached proposal;
  • Item Four: To resolve on the amendment of the Key-Man Clause, with the consequent amendment of paragraph 1 of Article 13 (Key-Man Clause) and Article 35 (Definitions) of the Rules and Regulations; and
  • Item Five: To resolve on the amendment of the final closing date of the subscription period, with the consequent amendment of paragraph 2 of Article 4 (Fund Unit Subscription Periods) of the Rules and Regulations.

Can anyone speak to why they want to create new share classes for GV investors with different minimum investment times? I’m not understanding the motivation for this.

Hello: I am applying for the GV and am seriously considering Explorer IV. Are they PFIC compliant for US taxpayers? They say they have 7 US investors already, but I am surprised that they have not guaranteed PFIC compliance.

Thank you. I know that this thread is for shareholders, but I have no other way to ask this question.

I’m not sure what you mean by “PFIC compliant” but I was able to get them to commit in writing to provide me with a PFIC statement annually. I suggest you do the same.

Thank you. I spoke to Helder earlier this week. He said they could not guarantee that they would supply enough information to allow us to make the QEF election. This really concerns me as I was almost committed to investing in them.

That’s very odd and slightly concerning to me. Take a look at the signed agreement he sent me, signed by the CEO.

Issuance PFIC Statement.pdf (21.9 KB)

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Well, frankly I don’t know if “PFIC statements” are the same as the Annual Information Statement that is necessary for QEF election. I specifically asked about QEF and sadly did not get a straight forward “Yes”.

I suggest you contact them ASAP to clarify this. Helder from Explorer did not promise sufficient documentation for us to make the QEF election. They need to give you a confirmed answer in writing. I look forward to finding this result.

My current status is: if Explorer is willing to supply the documentation, then I will go with them, despite their high fees. This is one of the few “real” funds out there not just started for GV investors. If they don’t offer the sufficient documentation, then I need to look elsewhere.

BTW, Helder said that they now have 7 GV investors from the US. I hope this is enough for them to pay the extra cost for QEF election compliance.

I don’t know, what loheiman posted seems quite clear to me as being sufficient as a statement of intent from the fund. If they are not making the same statement to you, that seems a little weird.

To be clear: There is no such thing as an official “Annual Information Statement” when it comes to PFIC. There are no formal forms or anything like that, there is no declaration to the IRS by the fund, or anything at all. The onus really falls on you, the individual investor, to ensure compliance with IRS regulations.

All that’s required is that the fund report to you your share of interest, dividends, cap gains - and be willing to show you their books so that you can independently verify their statement. How they do that is up to you and them.

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Hey Jeff: are you an Explorer IV shareholder too? Have you contacted them to affirm their commitment to supply sufficient documentation for QEF election?

Nope, just a peanut gallery spectator.