PE fund cash events - what is allowable to maximize yield

Residencies & citizenships Portugal Golden Visa 🇵🇹
1

Finally got my money to Portugal and am about to pull the trigger on an investment (Oxy Mercurio). But one question which came up:

If I invest into a PE fund, normally there are cash out events when an investment is sold off. The PE fund we are looking at said they will pay out the capital gains and stick the initial investment cash into a money market to maintain GV eligibility.

The problem is that this means that portion of your money is just sitting there not being put to optimal usage bringing down overall yield of a PE investment. Not a huge fan of this since if I am taking more risk, the yield has to be there.

Can I change investments midstream is maybe the threshold question. If I get a cash event, I would want to take that money and at least put it into a more “index” type fund if not another launching PE fund.

2

If this is a concern to you, I would pick a different fund that will re-invest your money in to new deals. Maybe one that is more of a fund that just happens to qualify for the GV, rather than a fund specifically set-up to target GV investors. Most GV investors are relatively conservative I’d say, and don’t want to lose money.

3

Yeah we interviewed a few but overall just felt more comfortable with Oxy. That being said, depending on the cash issue, it won’t outperform a safer investment overall.