Terra Nova is a private equity fund with best-inclass professionals that have more than 20 years of experience in the agriculture & asset management sector. The fund is focused on acquiring downside protected agricultural assets that will generate a consistent inflation-linked rental income in addition to the underlying capital appreciation of the land itself. These investments will be done with the highest ESG and Positive Impact standards. The Fund’s Management Team consists of experienced individuals from Quadrantis Capital and Terra Verde
Capital with extensive experience
- Stable ROI – The fund expects to deliver a steady income stream of 6% to investors after the end of the investment period, on top of the natural asset appreciation of the land properties.
- Closed fund – The fund is a closed term fund, hence by the end of its life, it will have sold all its assets and returned the proceeds to the investors, with an expected target IRR of 10%
- Exit – It is possible to exit earlier than the 8 years via secondary sale of the participation units (securities can be acquired and sold) at any time
Terra Nova is a golden visa eligible fund invests in agricultural land opportunities (agrobusiness), a very attractive asset class:
- Downside protection thanks to its asset backed nature;
- Low volatility returns with a sharp ratio of 1.24;
- Inflation-protected thanks to inflation- linked rents as well as faster land values growth during periods of inflation;
- Uncorrelated to other asset classes, performing well amidst market volatility thanks to robustness of food demand;
Excluding rental income, agricultural land’s historical value has risen over the past 25
years at an average of ~6% per annum and generated total returns above 10%.
Why Agriculture Land?
PERFORMANCE – Agricultural land has demonstrated strong absolute returns over the past several decades. It averaged ~11% total annual returns from 1992 to 2020, outperforming all other asset classes increasing ~22x from 1990 to 2020 vs just ~11x for S&P 500, ~9x for AAA
bonds, and ~5x for Gold
STABILITY – Agricultural land, as an asset backed investment, has proven to be a unique asset class that has delivered superior returns with relatively less risk or volatility than both traditional and alternative asset classes
INFLATION The high correlation of farmland returns with inflation sets the asset as an important store of value during inflation cycles, which in the current period of rising inflation presents a unique opportunity
| Category | Details |
|---|---|
| Fund Name | Terra Nova, FCR |
| Legal Structure | Fundo de Capital de Risco (FCR) | Closed-End Private Equity Fund, regulated by CMVM |
| Fund Manager | Quadrantis Capital SCR (NIPC registered) |
| Fund Size | Maximum size: €150,000,000 during a 2-year subscription period |
| Minimum Subscription | €100,000 |
| Maturity / Term | 8 years + optional 2-year extension |
| Investment Period | 2.5 years |
| Target Returns | Target IRR: 10% |
| Expected dividend yield: ~6% p.a. after Year 3 | |
| Set-Up Fee | 1.5% one-off fee on invested capital, charged at subscription |
| Management Fee | 1.5% per annum on committed capital |
| Covers fund operating costs (audit, administration, investment consultancy, etc.) | |
| Lower than typical Private Equity fund management fees | |
| Performance Fee (Carried Interest) | 25% of net profits |
| Applied only after full return of invested capital | |
| Subject to a 7.5% preferred (hurdle) return to investors | |
| Profit Distribution Waterfall | 75% of remaining profits distributed to investors |
| 25% allocated as carried interest | |
| Tax Regime | Capital gains taxed at 10% for Portuguese tax residents; 0% for non-residents. |
Download – Brochure
