European private equity (PE) funds have outstripped the performances of those in North America and Asia for the past two years, a report has revealed.
According to Pitchbook’s May 2025 Global Fund Performance Report, European PE funds delivered returns 34% higher than the nearest global rival.
It revealed the rolling one-year internal rate of return (IRR) was 14.1% for European PE funds in Q3 2024 – its highest since Q2 2022.
In comparison, North American funds delivered an IRR of 10.5% and the rest of the world – primarily Asia – some 6.1%.
Helping to drive those impressive returns is Portugal, with its pro-active approach to securing funding.
It continues to attract international capital through its highly attractive Golden Visa programme.
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International investors looking to obtain a Golden Visa residency by investment in Portugal can do so by committing €500,000 to alternative investment funds regulated by the CMVM (Portuguese Securities Market Commission).
This investment grants five years of residency for the investor and eligible family members, along with full access to visa-free travel across 29 Schengen countries. To maintain residency, the minimum stay requirement is just seven days per year in Portugal.
Golden Visa holders then have the choice to apply for dual citizenship and an EU passport after five years.
Paul Stannard is chairman and founder of Portugal Pathways and the Portugal Investment Owners Club – which supports affluent and discerning families looking at Portugal and securing Golden Visas, as well as enjoying money-can’t-buy experiences and other investment opportunities in Portugal.
He said: "We produce a Golden Visa investment fund index for Portugal of over 30 regulated alternative investment funds that have already secured €7 billion in investment since the Golden Visa residency-by-investment programme launched.
“There are over 30 funds to choose from, many of which are focused on the key sectors driving Portugal’s economy. However, it is really important to take advice and ensure that you have the right investment strategy, which gives you security and peace of mind, as well as diversification.”
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Paul Sheedy is a special advisor at the Portugal Future Fund, an alternative investment fund approved for Portugal’s Golden Visa. The fund invests in key growth sectors, including technology, media and international events, tourism and hospitality, healthcare, and renewable energy.
He explains: “Discerning investors are well-positioned to support Portugal’s economic growth and strategic innovation through targeted investments in key sectors.
“An investor attractiveness report by EY (Ernst & Young) found that 77% of global executives anticipate an improvement in Portugal’s investment attractiveness over the next three years, surpassing expectations for the wider Eurozone (67%) and the UK (59%).”
Adds Portugal Pathways’ Paul Stannard: “Portugal has created a unique environment for like-minded people to create sustainable investments in key sectors of economic strength.
“It allows value-creators and highly qualified talent to prosper through a combination of tax incentives, quality of life, and investment.
“We’re seeing a growing trend among investors to diversify their holdings into euros rather than relying solely on traditional currencies like the dollar. With Portugal’s rising profile as a stable, forward-thinking EU economy, more investors are turning to European equities and euro-denominated assets to balance their portfolios and reduce overexposure to U.S.-centric risks”
As an example, Portugal's tech sector is flourishing, with start-up funding in Lisbon growing by 30% annually over the past nine years - double the European average.
The National Network of Incubators and Accelerators (RNI) supports this growth, comprising over 150 innovation hubs.
Significant infrastructure projects further enhance Portugal's investment appeal.
Notably, US investment fund Davidson Kempner and UK-based Pioneer Point Partners have announced a joint investment of €8.5 billion through Start Campus, aiming to establish a large-scale data centre hub in Sines, on the Atlantic coast, by 2030.
With its combination of robust economic performance, strategic investment initiatives, and a commitment to innovation, Portugal is solidifying its status as Europe's premier investment destination.
Portugal Pathways can support you with your Golden Visa investment. Contact us today!
About Portugal Pathways
Portugal Pathways has supported hundreds of Golden Visa residency-by-investment applications and provides expert guidance through its professional supply chain network on luxury property, wealth management, and tax optimisation, including post-NHR tax regime planning, as well as private healthcare, IFICI tax incentive applications, money transfers and bespoke relocation solutions to enhance life and investments in Portugal.
About Portugal Future Fund
The Portugal Future Fund strategically invests in key sectors, driving growth and innovation across Portugal. Approved for Portugal’s Golden Visa residency-by-investment, it offers a unique opportunity for impactful and rewarding participation.
About Portugal Investment Owners Club
The Portugal Investment Owners Club, or P Club for short, is a unique investor membership community designed for discerning individuals, families, and organisations committed to exploring and capitalising on life in Portugal and enjoying money-can't-buy experiences and exclusive events.
Disclaimer: The information on the Portugal Pathways and Portugal Investment Owners Club (P Club for short) websites and in email communications is for general informational purposes only and should not be construed as legal, tax, or financial advice. You should consult and check with a qualified professional advisor before relying on any information provided on this website or in email communications. As it relates to investments in Golden Visas or other wealth management solutions offered by regulated and professional advisors, it is important to note that past performance is no guarantee of future returns. Private equities can be highly illiquid and come with risk and should always be under professional independent advice. Golden Visa investments need to be held for 6 to 7 years to allow for permanent citizenship/passport in the EU.
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