This article will cover:
- Celebrating a Milestone Together: VIDA Capital’s first fund (VIDA I) closed on January 21, marking a journey of trust, growth, and opportunity.
- Key Achievement Highlight: From capital raised to impactful investments like Villas d’Água, your support helped lay the foundation for long-term success.
- What’s Next? The Second Fund: Building on the success of the first round, the Second Fund (VIDA II) launches with the same proven strategy and a shorter fundraising period.
A few words
As we close VIDA I, which concluded on January 21, we’re thrilled to reflect on the milestones we’ve achieved together. This journey has been about more than just numbers, it’s been about building trust, creating opportunities, and setting the stage for future growth in investment funds focused on Portugal.
In this article, we’ll share the key accomplishments, return of investment highlights, and the impact your support has helped us create.
Section 1: Key Highlights of the First Round
VIDA I saw remarkable progress, and we’re proud to share some of the standout achievements:
- Total Capital Raised: Over €20M, reflecting the strong confidence and trust from our global investor community.
- Number of Investors Participating: Over 50 investors, united in their commitment to impactful and sustainable investments.
- Projects Funded: 25% of the fund has already been deployed in a hospitality project, now refurbished and fully operational. Two additional assets are currently undergoing due diligence, with plans to deploy 75% of the fund by the end of 2025.
Section 2: Building Strong Foundations with Villas d’Água
VIDA I laid the groundwork for long-term success, with a key milestone being the investment in Villas d’Água. This premier hospitality project reflects the fund’s commitment to sustainable growth and high-value opportunities in Portugal’s thriving hospitality sector.
Villas d’Água – Algarve, Portugal
Here’s a closer look at this landmark investment:
- Strategic Acquisition: In December 2022, Villas d’Água was acquired as a distressed asset through direct negotiation, avoiding public competition and ensuring exclusivity.
- Investment Overview: A total investment of €11.1M, with €5.7M in capital and 50% leveraged, focused on revitalizing this unique property.
- Prime Features:
- Located on the Algarve’s coveted “Golden Coast,” with 37 premium villas on a 34,640m² beachfront property.
- Renovations include modernized kitchens, premium furnishings, and upgraded outdoor spaces to elevate the guest experience.
- Projected Growth: Revenue is expected to grow by 2.5x, delivering an impressive IRR of 22% for investors, showcasing strong return on investment.
- Future Enhancements (by 2025): Plans include a beach club, premium restaurant, spa, and gym to further enhance guest appeal and long-term value. These exciting additions are set to open this year, solidifying the resort’s position as a premier destination in Portugal’s hospitality industry.
A Blueprint for Success
Villas d’Água represents more than just a hospitality project; it’s a model for future investments. Its success underscores VIDA Fund’s ability to identify and unlock the potential of high-value assets, delivering sustainable growth and strong return on investments for our investors
Section 3: What We’ve Learned
Throughout this process, we’ve gained valuable insights that will guide the next phases of our fund.
- Adapting to Market Dynamics: Portugal’s hospitality sector is thriving, with demand driving consistent growth. According to Statista, the hotel market is projected to generate US$1.11 billion in revenue by 2025 and grow at an annual rate of 3.22% from 2025 to 2029, reaching US$1.26 billion by 2029. This resilience and upward trajectory reinforce Portugal’s position as a premier destination for investments in the hospitality industry.
Section 4: Looking Ahead
The success of this first round sets a strong foundation for VIDA’s future. As we prepare for the next phase, we’re thrilled to announce the launch of our Second Fund (VIDA II) on 1st March 2025.
This new fund will follow the same successful strategy as the first, focusing on high-value investments in Portugal’s thriving hospitality sector. With a shorter subscription (fundraising) period, VIDA II offers a streamlined opportunity for investors to join this next exciting chapter.
Building on the momentum of the First Fund and the success of projects like Villas d’Água, this next phase is designed to deliver exceptional value and sustainable growth for our investors.
Conclusion
We want to thank every investor, partner, and supporter who made this first round of VIDA Fund a success. Your trust and commitment have been instrumental in achieving these milestones.
For detailed insights into the achievements of our first round, feel free to schedule a call with our team or explore our upcoming opportunities.
We’re excited for what lies ahead in investment in Portugal.
