As for the 7 year term, I am not too worried about that since shareholders can vote to extend the total maturity out to 14 years + the composition of the shareholders are 100% GV investors who invested in Q3FY21 and/or Q4FY21.
Was trying to follow your thinking but there is only two other fees on Aston Gold beyond the subscription.
In fact, simulating the scenario the market would have to appreciate 7%/yearly to provide for the variable fee (ie, performance fee) to be kicked - amounting to 3,234 euro performance gain at maturity. Also mind you that the 20% is a % of the 350K euro investment to the total asset of the fund in this case 350K/33M or 20% of 1.06%. Would be interested in knowing how you arrived at the 50% cap at 3% threshold to see if I missed something.
My interpretation of the first bullet is that they will pay out 50% of the fund’s income, up to 3%. That doesn’t mean they will take the other 50% as fees. If they do that, they will have to state that in the fees section in the MR, which I don’t recall seeing.
I’ve decided to go with Iberis as well, splitting between their Greytech II fund and their Portugal Yield Fund II, which purchases real estate primarily by investing in other types of industries and companies that own certain types of real estate, like grocery stores, offices, etc. It provides an early COC yield/distributions unlike the Greytech which invests in middle market companies as a VC fund and gains will be through appreciation/exits, etc of companies. Iberis seems to be a pretty solid outfit, with a couple of its principles having been involved with BCG here in the states, so I think they know what they’re doing. They’ve also been very helpful in helping us try to proceed with the GV application application/process here in the 11th hour. A little nervous because I was told yesterday that they’re about to be up against their hard cap in the Greytech fund so I hope we can get our bank account open and funded in time to make the capital call!
I plan to meet the minimum for Greytech II and they allow you to put the remaining of the €350k into PYF II which is actually less than their stated regular minimum for that fund.
I just confirmed with Gustavo that this is correct. The annual dividend paid out is capped at 3%, anything above this is held back for potential reinvestment not as a management fee. Note however that any dividend is included in the 5% profitability hurdle rate, so if income generated by investments is indeed in the 5-6% range, then the variable fee should be triggered quite easily.
Hi all, I’d been planning on investing in Greytech, but they unfortunately just reached their cap, and I’m interested in either Medcap or Bluecrow instead. If anyone is still willing to share on their experience with either of those, I’d appreciate it.
That’s a good point and I am doing that, just working it out right now. There are different minimum investment amounts based on what the total invested altogether in Iberis.
Happy to share my experience. Curious how others are dealing with this, especially considering whether banks can still issue the declarations in time even if we find a new fund. If anyone else is in a similar place and has concerns about getting done by the end of the year, like to hear what you’re considering.
I just heard that it could take weeks to have the fund units reflected in a bank account-- a condition which I thought was necessary for GV application. I was a bit surprised at this.
Does anyone know how long does it typically takes?
My experience with subscription phase once all the money has been transferred to the bank:
Day 1: Bank sends a form for you to fill out indicating that you wish to make the subscription.
Day 2: Form is filled out and sent back to the bank.
Day 3 - 11: Fund confirms you as an investor, bank transfers funds to the fund on your behalf.
Day 12: Fund units appear in bank portal.
Day 14: Bank issues SEF declaration.
It took 2 weeks (including weekends) for the fund subscription to go through and for the bank to issue the SEF declaration.
If one is to start subscribing today, it’d probably be very tight.
I think it is certainly possible that you could get a letter from the fund within 7 days and still have time to apply but only the bank and fund manager would know for sure. The challenge is that banks in Portugal are not likely to be rushing around trying to help you meet your deadline at the last minute. As I recall, it all took several weeks (this was months ago) and I tried to expedite it and received a cold response. Now the fund managers are busier than ever so good luck with that.
At this point, I’d say they’ve missed the boat entirely if someone were hoping for year-end starting now. This is Portugal. Their time off for Christmas is far more important to them than getting your money, and your crisis is just not their problem.
