The first fund managed by GP capital is Growth One. With a target size of €50 million, Growth One expects to complete its first closing in the last quarter of 2017 and complete its first investments in the beginning of 2018.
The Fund is focused on growth investment opportunities on three preferred areas: Chemicals, New Materials and Textile and Clothing.
The fund is looking for innovative companies that need capital to support their expansion plans, especially internationalization strategies. Portugal has a large base of installed innovative companies supplying mainly European markets, that, with the right guidance, funding and support may reach other international markets and become large competitive companies.
The team has already identified a set of investment opportunities.
Textile and Clothing
Global demographic expansion, environmental sustainability, the rising demand for energy and alternative energy sources, increased consumer nutrition and health awareness are major trends that are changing the way we live and driving demand.
Portugal is becoming a magnet to entrepreneurs due to high quality human resources at competitive prices, being part of the European Union, where there is a reindustrialization trend, and due to the general quality of its production factors, including reliability, celerity and talent.
Growth One will invest in areas that meet the global evolution and are aligned with global major trends, with significant growth opportunities, in which Portugal has clear competitive advantages and where we can anticipate realistic exit opportunities, financing companies that already export.
Growth One will invest in Portuguese SMEs with strong teams, relevant know-how and innovative products. Our investment fund will add value enabling the target’s international expansion, both by attracting foreign capital and through the expansion towards external markets, and promoting innovation in the target’s product portfolio and processes, along with a professional and thorough management.
Investing in Venture and Growth Capital Funds is one of the most tax efficient investment alternatives in Portugal. Non-residents will pay 0% of income tax over dividends earned in an Investment Fund. Portuguese investors will pay a fixed rate of 10% over dividends earned.
Growth Capital Funds have a very competitive return rate when compared with other investment alternatives. Additionally, GP Capital will distribute an extraordinary dividend of 5.0% of the earnings above the hurdle rate to its private investors.
Growth One is co-funded by IFD, a Portuguese Public Finance Institution, which allows the Fund to increase in 100% the amount raised with private investors. This will allow the Fund to expand its investment capacity and as a consequence multiply its earnings possibilities.
Growth One will invest in high potential sectors in which Portugal has competitive advantages and a large base of promising companies. There are not many funds targeting these transactional/industrial companies we want to target.
Being based in Portugal is also an advantage that Growth One will capitalize on. Being a European country with competitive factors of production, a link with all Portuguese speaking countries in Africa and South America and lower valuations when compared with companies based in other developed countries, gives Portugal unique arguments for investors.
Portugal is becoming a magnet to entrepreneurs who wish to establish their companies in a country that offers world class services and infrastructures at very competitive costs and that benefits from a large base of talent in our Universities.