Portugal at the Forefront as European Private Equity Outperforms Global Rivals

European private equity (PE) funds have led the global field for the past two years, delivering stronger returns than those in North America and Asia, according to a new report.

Pitchbook’s Global Fund Performance Report, published in May 2025, revealed that European PE funds achieved a one-year rolling internal rate of return (IRR) of 14.1% as of Q3 2024—marking their best performance since Q2 2022. This figure is 34% higher than the closest global competitor.

By contrast, PE funds in North America posted an IRR of 10.5%, while those in other regions, primarily Asia, returned just 6.1%.

A key contributor to Europe’s standout performance is Portugal, which continues to attract significant international capital, supported by its robust Golden Visa programme.

Under the scheme, international investors can obtain Portuguese residency by investing €500,000 into CMVM-regulated alternative investment funds. This investment grants a five-year residency to the investor and eligible family members, with visa-free access to 29 Schengen countries. The requirement to maintain this residency is minimal—just seven days per year in Portugal.

After five years, Golden Visa holders are eligible to apply for Portuguese citizenship and an EU passport.

Paul Stannard, chairman and founder of Portugal Pathways and the Portugal Investment Owners Club—which provides support for affluent families seeking investment and residency opportunities in Portugal—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.”

Among the funds approved for the Golden Visa scheme is the Portugal Future Fund. Special advisor Paul Sheedy highlighted its role in supporting key areas such as technology, media, international events, tourism and hospitality, healthcare, and renewable energy.

He noted:

“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%).”

Stannard added that Portugal has succeeded in cultivating a dynamic investment environment:

“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.

“Diversifying and having money in euros instead of just standard currencies like the dollar, and we are seeing an increasingly common trend with this. With Portugal's growing reputation as a stable, forward-thinking economy within the EU, more investors are turning to European stocks and euro-denominated assets as a smart way to balance their portfolios and reduce overexposure to traditional U.S.-centric investments.”

As Europe continues to lead the pack in global PE returns, Portugal is proving to be one of the continent’s most attractive and effective investment gateways.

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Interested in investing in Portugal's future? Contact the Portugal Future Fund today.

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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.

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Disclaimer: The information on the Portugal Future Fund website 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. Portugal Future Fund operates under CMVM regulations but is not directly endorsed by the CMVM or any governmental entity.