Pela Terra II Regenerate Fund

Most agricultural funds focus either on land ownership or commodity trading. Pela Terra II combines private equity ownership of working farms with improving the land, aiming to earn money from ongoing operations and increase the value of the assets over time instead of just focussing on short-term changes in crop prices.

Portugal’s post-2023 Golden Visa rules prohibit direct or indirect real estate investment. Pela Terra II invests in equity of agricultural operating companies, where land is a productive input rather than a rental asset, keeping the structure compliant while retaining asset backing.

Yes. Regenerative practices can reduce long-term climate risk by improving soil water retention, resilience to heat stress, and yield stability. This does not eliminate climate risk, but it aims to reduce downside volatility compared to conventional farming.

No. The fund has no exposure to residential, commercial, or hospitality real estate, and does not generate income from rent, leasing, or property appreciation unrelated to agricultural operations.

Returns are expected to come primarily from operational agricultural income as farms mature and productivity improves. However, investors should not expect regular income distributions, especially in early years, due to reinvestment and biological crop cycles.

The eight-year term is meant to match the growth periods of crops (especially permanent ones) and the timeline for getting a Golden Visa to citizenship, which helps lower the chance of having to reinvest before achieving immigration goals.

Portuguese law follows a non-retroactivity principle, meaning investors who qualify under existing rules typically retain their rights even if future policy changes occur. This does not remove all regulatory risk, but it significantly reduces it for subscribed investors.

No. Pela Terra II is a fully illiquid, closed-end fund. Investors should assume no liquidity or redemption options until maturity, except in rare secondary transfers that are not guaranteed.

Agricultural land historically benefits from rising food prices and input replacement costs. As inflation increases the value of food production and land productivity, farmland assets often preserve real purchasing power better than cash or fixed-income instruments.

No leverage strategy is publicly disclosed. The fund’s approach emphasises capital deployment and operational improvement, not financial engineering or debt amplification, which supports a lower-risk profile in private equity.

The strategy relies on crop diversification, organic certification premiums, and long-term operational efficiency rather than speculative price timing. This helps smooth revenue but does not eliminate exposure to global agricultural markets.

Unlike early-stage technology or venture funds, Pela Terra II invests in productive, income-generating assets with tangible value. While still illiquid and long-term, the downside risk profile is materially different from high-failure-rate venture capital.

The fund commits to providing PFIC Annual Information Statements, enabling U.S. investors to elect Qualified Electing Fund (QEF) treatment. This avoids punitive U.S. tax regimes that apply to most foreign pooled investments.

Impact is structurally integrated, not an afterthought. Regenerative practices directly support the fund’s financial thesis by improving land productivity, resilience, and exit attractiveness, aligning environmental outcomes with economic returns.

The profile lists CMVM ID 1816. Investors should verify current registry status and documents before subscribing.

Management fee: 2%. Performance fee: 20%. Subscription fee: 2%. Missing fee fields should be treated as diligence gaps, not as zero-cost assumptions.

The profile marks this fund as Golden Visa intended. Eligibility must still be confirmed against current law, fund documents, and the applicant's own legal file.