Golden Opportunity: Investing in Portugal through the Mercan Hospitality Investment Fund
Portugal continues to position itself as one of Europe’s most attractive destinations; not just for tourism, but for investors seeking secure, high-potential opportunities tied to the country’s growing hospitality and real estate sectors. The Mercan Private Equity Fund I (MPEF I) offers a unique gateway for investors looking to qualify for the Portuguese Golden Visa while capitalising on a professionally managed venture capital structure. This fund stands out by channelling investments into the hospitality industry, aligning with global demand and economic growth in Portugal.
Featured Developments: ALVOR Beach Resort, Bridgeview Gaia Hotel, and Ponte Do Vau Beach Resort – key hospitality projects under the Mercan Hospitality Investment Fund.
Key Highlights
- Golden Visa Eligible: MPEF I qualifies under Portugal’s Golden Visa framework as a venture capital fund, not a real estate investment.
- Backed by Global Brands: Projects under the fund operate under prestigious hotel chains such as Hilton, Marriott, IHG, Wyndham, and Hard Rock.
- €1.2 Billion Projected Development Value: The fund is part of a broader portfolio contributing significantly to Portugal’s tourism infrastructure.
- Targeted ROI with Buyback Assurance: Offers a structured return backed by SPV companies with a defined buyback clause.
Achievements of the Fund
The Mercan Hospitality Investment Fund has rapidly gained recognition due to its impressive portfolio and strategic market positioning:
- It currently holds or will hold majority stakes (90%) in three key SPV companies operating in Portugal’s thriving hospitality and tourism sector.
- The fund is aligned with Mercan Group’s proven track record, which includes over a dozen projects across Portugal and over €1.2 billion in cumulative value.
- Affiliated developments are located in high-demand areas, strategically targeting Portugal’s estimated 30 million+ annual visitors.
Requirements to Qualify for the Fund
To participate in MPEF I under the Golden Visa scheme, investors must:
- Commit a minimum investment of €500,000 into the fund.
- Maintain the investment for a minimum of 5 years to retain Golden Visa eligibility.
- Meet the eligibility criteria established by Portuguese immigration authorities, including clean criminal records and proof of legal funds.
Investment Earnings and Timeline of ROI
- Expected Duration: The fund operates on a 6-year timeline (including an optional 1-year extension).
- Return on Investment: The appraisal margin indicates a promising ROI; a total fund appraisal of €174.93M versus a €140M capital investment.
- Investor Alignment: Mercan itself has invested €14 million in the fund, signalling strong alignment of interest between the fund manager and investors.
- Projected Earnings: Investors may benefit from both the Golden Visa privileges and a capital return at fund maturity through guaranteed buyback by SPVs.
Security of the Investment
MPEF I offers an attractive level of security rarely matched in similar visa-eligible funds:
- Guaranteed Buyback: As outlined in the investor agreement, the SPV companies commit to a guaranteed buyback of investor shares.
- Majority Control in SPVs: The fund maintains 90% ownership in each project vehicle, with Mercan holding the remaining 10%.
- Risk Mitigation: The fund’s structure and SPV model provide a clear framework for investor protection, offering transparency and built-in exit strategies.
Mercan Private Equity Fund I presents a rare blend of lifestyle, investment, and residency opportunity, offering both strong financial potential and a path to European residency through Portugal’s Golden Visa. With projects anchored in the booming hospitality sector and managed by seasoned professionals, MPEF I stands as a compelling option for global investors seeking long-term value and strategic stability.