By André Bandeira, Investor Relations - Explorer Investments
With real estate paths curtailed, disciplined investors are migrating from passive assets to active value creation. The CMVM-regulated fund route is now the premier choice, but not all funds are equal. The distinction between a passive, open-ended fund and a hands-on, private capital vehicle is critical. This guide explores why serious investors choose the private equity model-and how Explorer's deep, operational involvement in its portfolio companies aims to deliver true alignment and growth, not just market exposure.
≈ €1.8B
Assets Under Management
20+ years
Track Record
€500,000
Eligible Minimum
Hands-On PE
Methodology
Governance • Operational Value • Access
The Portugal Golden Visa (ARI) grants residency to non-EU nationals who invest under defined criteria. With the fund route, investors typically maintain the qualifying investment for five years and meet modest physical-presence requirements, with family inclusion possible.
“As real-estate options narrowed, capital migrated to regulated funds - where risk is underwritten by process: sourcing, governance, and value-creation playbooks.”
For Golden Visa investors, the term "fund" is dangerously broad. Many assume any CMVM-regulated fund, like a standard liquid mutual fund (OICVM/UCITS) from a bank, is eligible. This is **incorrect**.
The Golden Visa legislation (ARI) is highly specific. It **legally excludes** these common, liquid funds by imposing two critical 'filters':
These rules were designed to force investment into the real, long-term Portuguese economy.
This means the investor's **only eligible options** are in the illiquid **Private Capital** space (Alternative Investment Funds or FIAs). The real decision is not *if* you should choose a liquid fund, but *which type* of illiquid, eligible fund is superior: **Private Equity (PE)** or **Venture Capital (VC)**.
| Criterion | Private Equity (PE) (e.g., Explorer) | Venture Capital (VC) | Standard Open-Ended (OICVM) |
|---|---|---|---|
| Core Focus | Buying established, mature, cash-flow positive businesses to improve them. | Investing in early-stage startups with high-growth potential (and high risk). | Buying small pieces of publicly traded stocks and bonds. |
| Level of Control | High. Takes majority/significant stakes, gains board control, and actively directs strategy. | Low to Moderate. Minority stakes, often with a board observer seat. Cannot force decisions. | None. You are a passive, microscopic owner of a public company. |
| Value Creation | Hands-on operational improvements, M&A, cost efficiencies, professionalization. | Passive capital injection. Value is tied to the startup's ability to scale and 'hit a home run'. | Passive market appreciation (Beta). Relies on the stock market going up. |
| Risk Profile | Moderate to High. Risk is in the *execution* of the plan, not the *survival* of the idea. | Extremely High. Speculative. Risk is in *survival*. Most startups fail. | Market Risk. Exposed to daily public market volatility and sentiment. |
| Access to CEOs | Direct & Constant. The PE manager is directly involved with the CEO and board. | Periodic. Attends board meetings but is not involved in daily operations. | Zero. You will never speak to the CEO of Apple or Microsoft. |
| GV Suitability | Excellent. The 5-10 year lock-up aligns perfectly with the 5-year visa requirement. | Eligible, but high-risk. A bad fit for capital preservation linked to residency. | INELIGIBLE. Standard liquid funds (OICVM/UCITS) are legally excluded. They fail the 5-year maturity and 60% local investment rules. |
“A Venture Capital fund invests in a *business plan*. A Private Equity fund like Explorer invests in a *business*. This is the fundamental difference.”
As the table shows, the law makes your choice clear: your capital must be illiquid and focused on Portugal. The choice is between PE and VC, and for a residency-linked investment, the difference is night and day.
Venture Capital is a "high-beta," speculative bet. You are investing in an *idea* or a *concept*, hoping it becomes the next unicorn. The risk is binary: the company either succeeds spectacularly or goes to zero. While eligible, tying your family's residency to such a speculative asset is a high-risk gamble. The manager has little control to "save" a failing startup.
This is where the Explorer model thrives and why it is the solid choice.
This is a common and critical point of confusion. The answer is **no**.
In the market, "Venture Capital" (often translated as 'capital de risco') refers to speculative, early-stage investing in **startups and ideas**. The model is built on the hope that 1 out of 10 investments will be a "unicorn" and pay for all the failures.
**Private Equity (the Explorer model)** is fundamentally different. We do not invest in *ideas*; we invest in **solid, established, profitable businesses**.
You are correct that the mechanism is "buy and sell". But the value is created *in between*. We buy a solid company and apply our hands-on expertise-direct CEO access, board control, operational improvements-to build a *better, stronger, more profitable* company before we sell.
Venture Capital is a bet on *speculation*. Private Equity is an investment in *execution* and *fundamentals*. For a Golden Visa investor, this distinction is everything.
Now that you understand *why* the Private Equity model is the superior structure, you can see why Explorer Investments is one of Portugal's largest and most experienced independent PE platforms. For over 20 years, our strength has been our deep operational involvement and our ability to source unique opportunities. We don't just pick assets; we build businesses. This institutional DNA is what separates us from passive investment vehicles.
≈ €1.8B
AUM (approx.)
20+ years
Experience
€500,000
Minimum (fund route)
We don't wait for deals. Our 20+ year track record and extensive local network mean we originate unique, often off-market, opportunities. We know what to invest in because we are on the ground, analyzing fundamentals.
This is our core. We get actively involved. Our teams work directly with portfolio company CEOs and boards to drive strategy, optimize operations, and execute growth plans. This is true stewardship.
As a CMVM-regulated entity, we provide transparent, institutional-grade reporting. Our investors gain access to a platform built on discipline, compliance, and a powerful network of operators.
Illustrative only - past performance is not indicative of future results.
“In public markets, you observe value. In Explorer's private equity model, we are directly involved in manufacturing it. Our access to management and solid, repeatable process is our edge.”
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This is a key point. The Golden Visa law **explicitly excludes** standard, liquid mutual funds (OICVM/UCITS). The law requires two things these funds don't have: 1) A 'maturity' (lifespan) of at least 5 years (open-ended funds are perpetual), and 2) 60% of the investment must be in Portuguese companies. The law forces you to choose a long-term, illiquid fund, making Private Equity the solid, institutional choice.
This is a common confusion. No. 'Venture Capital' invests in high-risk, speculative startups. Private Equity (PE), like the Explorer model, invests in mature, established, and often profitable companies. The goal of PE is not to *hope* for a winner, but to use **hands-on control and operational expertise** to make solid companies even better. It is a fundamentally more solid, fundamentals-based approach.
Yes. Unlike many open-ended funds, private equity investors receive detailed disclosures on the specific portfolio companies and periodic reporting on their performance.
Not typically. The ARI route assumes a multi-year commitment. For this horizon, governance, alignment, and the manager's ability to create value (like Explorer's) matter far more than day-to-day liquidity.
Risk is managed through deep initial due diligence, diversification, and most importantly, active stewardship. By having direct access to management and board seats, managers like Explorer can proactively address challenges.
Yes - spouse and dependents can be included, subject to current rules.
Our 20+ year track record of institutional discipline, our extensive local network for sourcing unique deals, and our hands-on, operational approach to building value directly within our companies.
Let’s map your objectives to a CMVM-regulated solution. Speak with me or a senior colleague - confidential, practical, and tailored to your goals.
André Bandeira
ab@explorerinvestments.com
Maria Campos Silva
mcs@explorerinvestments.comProfessional sourcing, governance, and reporting across the investment cycle.
Vehicles supervised in Portugal with independent oversight and audits.
Multi-year holding period aligns with ARI timelines and value creation.
Simplified residency path with spouse and dependents included.
Live, work, and travel across the EU once residency is in place.
Operational experience with international families and advisors.
Get your complete, free guide to the Portuguese Golden Visa. Learn how to invest with confidence through Explorer Investments, the country's largest private equity fund.
André Bandeira
ab@explorerinvestments.comMaria Campos Silva
mcs@explorerinvestments.comCopyright © 2025 Explorer Investments
It is recommended to consult Chapter V of Decree-Law nº 162/2014, of October 31st, published in the Official Gazette, as well as its revision by Law nº 2/2020, of March 31st. The information included here is of a general nature, and therefore each potential investor should seek independent advice (e.g., legal, financial, tax, etc.)