Mandatory VC/PE Investment

If you are seeking a Significant Investor Visa, or Investor Visa you must make a mandatory investment into a complying Australian venture capital fund.  Purpose Driven Capital’s Sustainable Enterprise Fund is a complying venture capital fund, able to receive Significant Investor Visa and Investor Visa VC/PE investment.

For every Significant Investor Visa application they must invest $5M, including $1M that must go into registered VC/PE investment.

188b Investor Visa’s must invest $2.5M with $500K into an ESVCLP, such as the Sustainable Enterprise Fund.

Reluctant Compulsory Investment

Of course VC/PE investment can be the source of incredible returns on investment, but it can be more when the investor knows that they are supporting exciting ventures and teams to grow businesses and develop new technologies.

But that is not every investors motivation.  Many have a different perspective on VC/PE investment, perhaps not as favourable.

VC/PE investment is a compulsory component of the Australian Investor & Significant Investor visas and this compulsory aspect might be cause for some resistance.  What if the investor feels that most available VC/PE funds are not operated by managers they trust and respect, or that the underlying investments are too speculative for their preference.  Then, those investors might be reluctant to commit to the ten year commitment of a fund where their visa requirement is only 5 years.  They might also resent the industry standard fee structure of 2% management and 20% of profits.

If, as an investor, you have such reluctance then you are going to want to at least select the best of available fund managers.  But, venture capital funds are not normally like other retail investment pools where they are always open for new investment.  Instead investors have to wait for the best managers to open a fund and then allow a window for investment into the new fund.

Your Self Managed Venture Capital Fund

Where other VC/PE investments have drawbacks for Visa investors Lellco, working with the Sustainable Enterprise Fund, a compliant VC/PE fund for visa investment, has overcome those drawbacks.

Our solution is what we call your Self-Managed VC Funds (SMVCFs).  It is a whole lot like Self Managed Superannuation Funds giving individuals power and control over their superannuation investment portfolio.  We do this with investment selection and decision making by the investor, managed and administered by our professional team, and invested through the Sustainable Enterprise Fund, a venture capital fund registered with the Australian federal government as compliant for visa VC/PE investment and therefore also making all returns on investment exempt from both income and capital gains tax.

The flexibility in its design offers Investor Visa applicants unique benefits because they can have direct input into the selection and management of investments, pay much lower fees, select lower risk investments and better control the investment term, either aligned to the visa 5 year requirement or enjoying the full 15 years of tax incentive benefits.

1. Investment selection and decisions impacting your SMVCF;

2. Lower risk investment selection in your SMVCF;

3. 50% to 75% lower fees in your SMVCF;

4. Investment term either 5 years of visa or stay in your tax exempt SMVCF for up to 15 years;

5. Other funds necessarily limit exit options and flexibility, but not your SMVCF; and

6. Structurally, other VC investments are only open for investment for a specific window, your SMVCF remains open until it achieves capacity or we register the next compliant fund.

Self Managed VC Fund Enquiry

If you, or your Investor Visa client, needs to make a compliant VC/PE investment why not establish a Self Managed VC Fund today.  Please make an initial enquiry below, and we will call you to discuss further.