Portugal Yield Fund II, FCR Investor Presentation
The target net return for the Portugal Yield Fund II is ~4-5%
ILLUSTRATIVE RETURN SCENARIO
Years
0
1 2 3
4 5
6
7
8
Investment -350.2
3.6
10.4 21.8
17.6 16.3 16.3 16.3
16.3
TARGET RETURNS
> Portugal Yield Fund seeks a lower risk profile, by investing in asset
backed companies, meaning companies in which the investment is
substantially covered by a real estate asset that protects the downside
> After repaying the total amount contributed to the fund, income will be
distributed to the investors to ensure an annual compound return of
4% on the capital drawn down (Hurdle)
> The fund will pay the management company a performance fee of 25%
of the net profit generated (80% catch up), provided the investors
have secured at least 4% of annual return on their investment
> Afterwards, 75% of the remaining capital and/or income will be
distributed to all participants in proportion to the contributed capital,
with the remaining 25% distributed as carried interest
Yield
Divestment
Total return
Target yields of ~6% unlevered,
4 to 5% net return (post leverage and fund fees)
1) It is half of the last 5 years CAGR of the Commercial Property Price Index: 3% - Source: INE (Statistics Portugal)
Note: Last 30-years CAGR of the Housing Price Index: 4% - Source: OCDE
Original €350 K plus €118.1 K (~35% increase)
349.7
This example is a simulation of the investor's returns assuming
the current investment conditions. This scenario offers a net IRR
of ~4.3% and considers a yearly asset appreciation of 1.5%1.
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