Hi Guys,
I am investigating this two fund and has already talk with their fund managers. I think both of them are ok and their features are similar. Has anyone already invested any of them? and any advice will be appreciated.
Pela Terra is top-notch. A solid investment vehicle. Talk to Alex Lawry-White, tell him Matthew sent you. They are administered by STAG, Portugal’s leading VC firm. All my dealings with Alex and Stag have been superb. No drama.
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I would recommend a fund that is listed and you can check in morning star or bloomberg. Its taking so long to get approvals for GV, i would puy my money in a more solid fund than a VC fund. But that’s me, research well before you invest.
Thank you for the reply! Alex is the one I talked with. He is very kind and patient to introduce the 2nd Pela Terra fund. But he is sensitive and conservative to share more information about the performance of the existing Pela Terra farmland. That’s why I am trying to get more information from the community.
Thanks again~
Thank you! Getting GV and capital preservation are my two key points to make the investment decision. Still working on the research~
I have invested in Pela Tera …a couple of things to keep in mind:
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The fund aims to distribute a dividend of up to 5% as return per annum. To date, no dividend distribution has been done since the fund inception.
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The fund is led by Alex and Nathan, together they have the majority voting power.
Hello Ahmad,
Thanks for sharing your experience. I have gone through the intensive vetting process via Stag and have been impressed with the team. I’ll ensure I’m clear on when the dividends will begin.
I sincerely appreciate your insights.
Cheers,
Siri
Given the uncertain timelines, I don’t know why you’d risk an investment like that over an open ended fund
I don’t think they’re at all safer from a capital preservation fund than something that is effectively an index fund (e.g. imga)
Hi Aaron,
I had the same thoughts, but thought it’s better to invest in something that is more regulated.
Check this one: IMGA Accoes Portugal
Ticker: AFACCPT:PL
I cannot speak to the specifics of Pela Terra’s agreements (I have never seen them), however I think it’s common for closed funds to only start paying dividends once the fundraising has completed and the capital has been deployed.
It also goes for many other types of investments, e.g. if you invested in a Mercan hotel you’d only start getting your return when the hotel is operational.
@ahmad.masri at what point does your investor agreement state that you would start receiving dividends?
I didn’t invest in Pela Terra, but looking through my communication with them, the usual pattern of cashflows for investments should not apply to them. Specifically, they were supposed to acquire land plots and then lease them, which is also how it is described by STAG. Given that they claim the fund was fully subscribed in early 2023, the investment stage must be long completed by now. If whatever has been promised was not paid yet - and I don’t remember the schedule of repayment so I’m not claiming there’s a contract violation - then there needs to be some explanation.
No timing is set in the agreement. It is supposed to be brought to the General Meeting for voting.
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Good afternoon Chao, I would very much like to share results from Pela Terra Farmland (e.g. Pela Terra 1).
While it’s true that we have to comply with legal restrictions on sharing reports that are confidentially produced for investors in closed funds, the facts within (e.g. the fund’s positive performance) are ours to share, and we’re more than happy to do so.
Can you send me your email so I can do so?
Thank you very much!
Hi @ahmad.masri, thanks for your comments. It’s correct that Pela Terra 1 didn’t make distributions during the fundraising period. In those 2 years the team has built Portugal’s first (and now largest) agriculture fund.
The fund is oversubscribed, capital is fully deployed, one million trees have grown 
, and the productive years from now until liquidation (2030) are set to be extremely profitable, as predicted.
Our earliest investment has appreciated by 38% already, and Q4 2024 will see our first harvest - a wonderful milestone to have reached.
I will be delighted to speak to all who are interested to learn more about activity in both Pela Terra 1 and Pela Terra 2.
I hope this also answers your question @gny ?
Just a quick one here, @raivikas, Pela Terra funds are as government-regulated as it’s possible to be under Portuguese financial regulation.
The fund is licenced and regulated by Portugal’s CMVM and audited by Deloitte Portugal & KPMG USA.
I hope that’s helpful!
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Thanks for responding to the thread. I’ve already completed my investment but I’m happy to learn about the new funds that pop up.
However, I’m slightly confused. I suppose your enthusiasm for the upcoming harvest is not about the performance of the fund but the impact on the region (which is understandable and commendable) because as far as I understood producers pay rent to the Pela Terra fund such that their performance does not really impact the fund’s performance unless they fail to pay their rents due to insolvency, etc? Has the business model changed? Will Pela Terra 2 operate along the same terms / business model as 1?
Everyone should be mindful of the fact that these are venture capital funds. They are highly risky by their very nature. You should be prepared to lose some or all of your original capital. You should not be putting a significant portion of your net worth in to these investments.
By banning certain type of investments the PT government is forcing some investors in to investments that probably really aren’t suitable for them.
The listed open ended funds are arguably a bit less risky due to the diversification, but likely to be highly volatile. Stock markets can lose 40% of their value in a bear market. You should consider these as long term investments so you can ride out any market downturns - be ready for 10 years +.
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Thanks @gny, I appreciate your interest.
Our investors’ primary requirement is the secure preservation of their capital. To achieve this, both Pela Terra funds hold large, stable, working assets with very low price volatility compared to the stock market.
The annual revenue generated comes from the activity on the farms themselves, themselves rather than from rental income.
@Beanieskis this is relevant to your point as well - the stability of agricultural assets can offer powerful protection against the risk of more volatile sectors like stocks, VC investments in startups/tech, energy prices, etc, since they tend to maintain consistent pricing in good economic times and bad, not rushing up or down with more volatile asset classes. This is the main reason investors choose to protect their capital this way during their Golden Visa journey.
Regarding the performance of the fund vs the region @gny :
The agricultural sector in Portugal and the broader geographic region is performing well (as you alluded to in your question). New Institutional capital arrives every year in Iberian agriculture. For our investors, this further protects their capital as assets are appreciating, and we’re very well positioned to capitalise on this since we’re interwoven into the domestic market and it’s all-but-impossible for new actors to access the best deals. However, this is not strictly relevant for annual revenue since that comes from the activity on the farms.
We are looking to invest in Fortitude & also C2 Legacy. Anyone had any experience with either of these?