Foreign Direct Investment: 5 Proven Strategies Fund Managers Use to Raise Capital Globally
Foreign direct investment represents one of the most underutilized capital raising channels available to fund managers operating in today’s global alternative asset market.
Key Takeaways
- Understand how foreign direct investment programs such as citizenship by investment and residence by investment create structured pathways for international capital to flow into funds and real assets.
- Consider how Portugal’s venture capital fund option within its golden visa program gives fund managers a direct mechanism to attract foreign direct investment capital from international investors seeking EU residency.
- Learn how fund managers can explore international feeder fund structures to access foreign direct investment capital pools that most domestic managers overlook entirely.
- Discover why working with a licensed, reputable service provider is the foundational step before engaging any foreign direct investment or investment immigration program.
- Explore why acting early in any foreign direct investment program matters, as regulatory changes and program closures have repeatedly eliminated options that were previously available to investors and fund managers.
What Foreign Direct Investment Means for Fund Managers
| Citizenship by Investment | Residence by Investment (Golden Visa) |
|---|---|
| Full citizenship granted after due diligence review | Residence permit granted; citizenship not automatic |
| ~10 countries offer programs globally | Portugal, Spain, Greece, Malta, UAE |
| Caribbean: from ~$100,000 USD | Portugal VC fund: $500,000 USD |
| Malta (EU): ~€950,000; ~18 months | UAE: ~2M AED (~$550,000 USD) real estate |
| Timeline: 6–12 months typical | Timeline: varies by jurisdiction |
Framework: John Green, Managing Partner, Latitude USA
Foreign direct investment is a term that most fund managers encounter in macroeconomic reporting, but rarely consider as an active capital raising strategy for their own funds. In this episode of Making Billions Podcast, host Ryan Miller sits down with John Green, Managing Partner at Latitude USA, to explore how foreign direct investment flows through investment immigration programs and why fund managers should pay close attention. John has worked with firms including Goldman Sachs, HSBC, Ernst and Young, and UBS, and now specializes in connecting investors with citizenship and residency programs around the world.
According to John, foreign direct investment through investment immigration operates across two primary program types: citizenship by investment and residence by investment, also known as golden visas. Both create structured, government-sanctioned pathways through which capital moves across borders, and both have direct implications for fund managers seeking to diversify their LP base internationally. Understanding the mechanics of foreign direct investment at this level gives fund managers an informational edge that most of their competitors simply do not have.
The SEC has long recognized that alternative fund managers must think globally when building their investor base, and the framework John describes in this episode gives fund managers a concrete educational foundation for doing exactly that. Foreign direct investment programs are not abstract policy mechanisms, they are active capital flows with real fund structures attached to them, and fund managers who understand this are better positioned to have informed conversations with international LPs.
Citizenship by Investment: The Foreign Direct Investment Entry Point
Foreign direct investment through citizenship by investment programs represents one of the most accessible structures for ultra-high-net-worth individuals moving capital across borders. According to John, approximately ten countries currently offer citizenship by investment programs, with five Caribbean nations leading the market: Antigua and Barbuda, Dominica, Grenada, St. Lucia, and St. Kitts and Nevis. These programs allow investors to contribute or invest in a country and receive citizenship after a due diligence review, typically within six to twelve months.
The cost structure of these foreign direct investment programs varies significantly by jurisdiction. Caribbean citizenship programs start at just over $100,000 USD and can include spouses, children, dependent parents, grandparents, and in some programs, siblings. At the upper end of the foreign direct investment citizenship spectrum sits Malta, the only EU citizenship by investment program, which starts at approximately 950,000 euros and takes around 18 months to complete.
For fund managers, understanding foreign direct investment through the citizenship by investment lens matters because it reveals who the capital is attached to, what their motivations are, and what structures they are already participating in. Investopedia defines foreign direct investment as capital deployed by an individual or entity into a business or asset in a foreign country, and citizenship programs are a formal government-administered channel through which that deployment happens at scale. Fund managers who understand this context are better equipped to speak the language of international investors who are already thinking globally about where their capital goes.
Golden Visa Programs and the Foreign Direct Investment Opportunity for Fund Managers
Framework: John Green, Managing Partner, Latitude USA
Foreign direct investment through residence by investment programs, commonly known as golden visas, is where fund managers will find some of the most compelling structural opportunities discussed in this episode. According to John, the primary golden visa markets are Portugal, Spain, Greece, and Malta, all of which created these programs following the 2008 and 2009 debt crisis as a mechanism to attract foreign direct investment and stimulate their economies. The result has been billions of euros flowing into these countries through structured investment channels.
Portugal’s golden visa program is particularly relevant for fund managers because it includes a venture capital fund option. As John explains in this episode, investors can place $500,000 into a qualifying venture capital fund and receive a Portuguese residence permit in return. That fund must deploy at least 60% of its capital within Portugal, but 40% can be allocated outside the country, making foreign direct investment through this structure genuinely flexible for global fund managers.
This is a concrete example of how foreign direct investment policy and fund management intersect in ways that create real capital raising opportunities. Fund managers who build or partner with qualifying structures in Portugal are accessing an investor motivation that goes beyond pure financial return, as the residence permit itself is a separate form of value that drives capital decisions. Forbes notes that foreign direct investment is increasingly driven by lifestyle, tax, and residency considerations alongside traditional return expectations, which is precisely the dynamic John describes in this episode.
Dubai and Emerging Foreign Direct Investment Markets for Capital Raisers
Foreign direct investment flows are not limited to European golden visa programs, and fund managers exploring international capital sources should understand the growing role of markets like Dubai. According to John, the UAE offers a golden visa tied to a 2 million dirham real estate investment, which is approximately $550,000 USD, and grants a residence permit allowing the holder to live in the United Arab Emirates. John notes that he has been visiting Dubai for approximately 12 years and describes the pace of development and foreign direct investment attraction as extraordinary, with new infrastructure emerging every year.
The foreign direct investment dynamic in Dubai is driven by a combination of factors including tax strategies, regulatory environment, geographic positioning, and the quality of infrastructure that continues to attract high-net-worth individuals and institutional capital from around the world. For fund managers, Dubai represents not only a potential LP market but also a potential jurisdiction for structuring international operations, feeder funds, or vehicles designed to attract foreign direct investment from the broader Middle East and Asia Pacific regions. Ryan Miller notes in this episode that fund managers with international ambitions should explore how UAE-based structures might complement their existing fund architecture.
Understanding the foreign direct investment environment in emerging global financial centers like Dubai gives fund managers the contextual knowledge they need to have credible conversations with investors based in those regions. The Wall Street Journal has covered the rise of Dubai as a global wealth hub extensively, and the investment immigration infrastructure John describes in this episode is one of the key mechanisms through which that wealth concentration continues to grow. Fund managers who understand this are better prepared to build relationships in markets where capital is actively seeking international deployment.
Using Feeder Funds to Access Foreign Direct Investment Capital
Foreign direct investment strategies become most actionable for fund managers when they are connected to specific fund structures, and the feeder fund model is one of the most practical tools available for accessing international capital pools. Ryan Miller raises this point directly in the episode, noting that fund managers domiciled in the US can potentially open a foreign fund or feeder fund in a country like Portugal and use the golden visa program as a mechanism to attract foreign direct investment into that structure. According to John, this is exactly how many of the venture capital funds qualifying under Portugal’s golden visa program operate.
The mechanics of this foreign direct investment approach require careful structural and legal planning, and John is clear in this episode that working with a reputable, licensed service provider is non-negotiable. The example he gives of a client who attempted to structure a Spain golden visa investment independently resulted in a rejection and approximately $60,000 in additional costs through transfer taxes and corrective transactions. The foreign direct investment process has specific structural requirements that vary by jurisdiction, and errors are costly.
Ryan also references the EB-5 program in the United States as a parallel example of how foreign direct investment through immigration can be used as a capital raising mechanism domestically, citing George Eakins of the American Dream Fund as a practitioner in that space. The SEC’s Office of International Affairs provides publicly available guidance on cross-border regulatory considerations that fund managers should review when building international LP relationships tied to foreign direct investment structures. Fund managers considering feeder fund structures tied to foreign direct investment programs have a growing body of precedent to study and learn from.
How to Select Service Providers in the Foreign Direct Investment Space
Framework: John Green, Managing Partner, Latitude USA
Foreign direct investment through investment immigration is a highly specialized field, and one of the most important practical insights John shares in this episode is the framework for selecting a qualified service provider. According to John, the first criterion is membership in the Investment Migration Council, which he describes as the organization that oversees ethics and standards across the foreign direct investment and investment immigration industry. Fund managers and investors exploring foreign direct investment programs should verify that any firm they engage is an active IMC member before proceeding.
The second criterion John identifies is that foreign direct investment and investment immigration should be the firm’s primary line of business, not a side offering. He gives the example of a client in St. Kitts and Nevis whose local service provider, operating investment immigration as a secondary service, failed to properly articulate an appeal when the client faced rejection due to a mischaracterization of his corporate title. The appeal was ultimately unsuccessful, costing the client an additional $30,000 to $40,000 USD.
John also notes that Latitude holds licenses in the five Caribbean citizenship programs and in Malta, and that the firm operates as a government advisor, having helped design foreign direct investment programs from the ground up for national governments. Harvard Business Review’s framework for evaluating service partners aligns closely with what John describes: track record, specialization, licensing, and alignment of incentives are the core selection criteria that apply whether you are choosing a supply chain vendor or a foreign direct investment advisory firm.
Why Timing Matters in Foreign Direct Investment Program Access
Foreign direct investment programs are not permanent fixtures of the global financial system, and one of the most actionable insights John shares in this episode is that fund managers and investors who delay their exploration of these programs risk losing access entirely. According to John, the UK shut down its immigrant investor program, Ireland followed suit, and Cyprus closed its citizenship by investment program as well. The EU has consistently applied pressure on member states to curtail or raise the cost of their foreign direct investment and residency programs, and Spain, Portugal, Greece, and Malta have all faced or are facing that pressure.
Portugal’s foreign direct investment program already underwent a significant structural change when real estate and bank deposits were removed as qualifying investment options, leaving the venture capital fund route as the primary remaining pathway for foreign direct investment into the golden visa program. John notes that many investors who had been considering the real estate option missed the window because they delayed making a decision. The foreign direct investment opportunity that existed under the old structure is no longer available, and those who waited found their options significantly narrowed when the program changed.
John also mentions in this episode that there are market signals suggesting Caribbean citizenship program prices may double due to EU pressure, though the timing remains uncertain. For fund managers exploring foreign direct investment strategies tied to Caribbean structures, this pricing risk adds urgency to the due diligence and decision-making process. Bloomberg has reported on the increasing regulatory scrutiny of investment migration programs globally, which is consistent with the program closures and modifications John describes. Fund managers who treat foreign direct investment program access as a time-sensitive strategic opportunity are better positioned than those who treat it as a perpetually available option.
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Compliance, Due Diligence, and the Foreign Direct Investment Vetting Process
Foreign direct investment through investment immigration programs involves a structured due diligence process that fund managers and investors must understand before engaging any program. According to John, every citizenship by investment and residence by investment program requires applicants to pass rigorous background checks administered by the host government, and the integrity of that process is what gives the resulting citizenship or residency its value in the eyes of other nations. Fund managers who are considering these programs as part of a broader foreign direct investment capital raising strategy need to understand that the vetting process is bilateral.
John is explicit in this episode that programs which appear online without government verification should be treated with extreme skepticism, and he advises calling the relevant embassy or consulate directly before committing any capital to an unverified foreign direct investment program. He cites examples of fraudulent programs falsely attributed to countries like Mexico and Romania, which have no legitimate citizenship by investment infrastructure, as evidence that the reputational risk in this space is real. The Investment Migration Council maintains a publicly accessible directory of licensed and compliant member firms that investors can use as a starting point for verification of any foreign direct investment service provider.
For fund managers, the compliance dimension of foreign direct investment through investment immigration has direct implications for LP onboarding, anti-money laundering obligations, and cross-border regulatory adherence. Understanding that the compliance burden in foreign direct investment programs is intentional, designed to produce legitimate, verifiable capital flows, helps fund managers frame these programs not as workarounds but as structured, government-sanctioned channels for international capital deployment. Fund managers who treat compliance as a feature rather than a friction point will find it easier to build credibility with international LPs engaged in foreign direct investment immigration programs.
Understanding Investor Motivation Behind Foreign Direct Investment Programs
Foreign direct investment through investment immigration is driven by motivations that go well beyond financial return, and fund managers who understand this distinction are better equipped to build relationships with international LPs participating in these programs. According to John, investors entering citizenship by investment or golden visa programs are motivated by a combination of portfolio diversification, succession planning, retirement planning, and what he describes as a plan B, a backup option that provides optionality in the event of political instability, travel restrictions, or changes in their home country’s regulatory environment. The foreign direct investment capital attached to these motivations is not purely return-seeking in the traditional institutional sense.
John references the COVID-19 period as a concrete illustration of why second citizenship and residency have grown in demand among high-net-worth individuals globally, noting that American investors who held second citizenships were able to travel freely during periods when the US passport was restricted in multiple countries. This type of foreign direct investment motivation, driven by optionality and lifestyle considerations rather than yield alone, means that fund managers building structures around these programs are serving a distinct investor need that traditional domestic fund marketing does not address. Ryan Miller notes in this episode that recognizing this distinction is what separates fund managers who can speak credibly to international LPs from those who cannot.
John also observes that the US has emerged as the number one source market for Portugal’s golden visa program, which signals a significant and growing domestic appetite for foreign direct investment vehicles that deliver non-financial value alongside capital deployment. Investopedia’s coverage of golden visa programs confirms that residency and citizenship benefits are now primary decision drivers for many high-net-worth investors considering foreign direct investment through immigration. Fund managers who understand what an investor is actually buying when they participate in a foreign direct investment immigration program are better positioned to communicate their fund structures as genuine solutions rather than incidental qualifying vehicles.
How Foreign Direct Investment Programs Are Evolving Under Global Regulatory Pressure
Foreign direct investment programs tied to investment immigration are under sustained and increasing pressure from supranational regulatory bodies, and John’s account in this episode provides fund managers with a clear picture of how rapidly the available options can change. According to John, the EU has consistently pressured member states to curtail their foreign direct investment immigration programs, resulting in the closure of the Cyprus citizenship program, the shutdown of Ireland’s immigrant investor program, and the termination of the UK’s equivalent structure. Portugal’s program was modified to remove real estate and bank deposits as qualifying options, leaving the venture capital fund route as the primary remaining pathway for foreign direct investment into the golden visa program.
John also notes in this episode that pricing pressure in the Caribbean citizenship by investment market is a live and evolving risk, with signals suggesting that program costs could double depending on how EU influence continues to shape the regional market. For fund managers who are exploring foreign direct investment strategies built around Caribbean feeder fund structures or qualifying real estate vehicles, this pricing risk represents a structural consideration that should be incorporated into any long-term capital raising plan. The foreign direct investment environment in investment immigration is not static, and the programs that exist today may look substantially different within a two-to-three year horizon.
John’s core advice in this episode, start sooner rather than later, reflects the reality that foreign direct investment programs are sovereign policy instruments that can be modified or eliminated with limited notice to investors or fund managers who have built strategies around them. Bloomberg has reported extensively on the EU’s position regarding investment migration programs and the regulatory momentum that has already eliminated several established foreign direct investment pathways in recent years. Fund managers who treat program access as a finite and time-sensitive resource are approaching the foreign direct investment immigration space with the appropriate institutional discipline.
Building a Long-Term Capital Raising Strategy Around Foreign Direct Investment
Foreign direct investment as a capital raising strategy is most powerful when it is integrated into a fund manager’s broader LP development framework rather than treated as a one-time transactional opportunity. In this episode, Ryan Miller frames the conversation with John as an educational foundation for fund managers who have not yet considered how foreign direct investment flows through investment immigration programs and what that means for their own fundraise infrastructure. The combination of program knowledge, structural expertise, and LP motivation awareness that John describes represents a differentiated capability that very few fund managers are currently building.
John’s firm, Latitude USA, serves as a practical illustration of what specialization in the foreign direct investment immigration space looks like at the institutional level, licensed in multiple jurisdictions, serving as a government advisor, maintaining IMC membership, and operating investment immigration as a primary rather than secondary line of business. For fund managers, the parallel takeaway is that building credibility in the foreign direct investment capital raising channel requires the same depth of commitment: engaging qualified legal counsel, understanding the structural requirements of qualifying investment vehicles, and developing relationships with service providers who operate at the intersection of capital and compliance. Foreign direct investment capital does not flow to fund managers who have a surface-level understanding of how these programs work.
Ryan Miller’s broader point throughout this episode is that the foreign direct investment channel represents a pool of international capital that most domestic fund managers have never seriously considered, and that the educational foundation provided by guests like John is the starting point for fund managers who want to expand their LP base globally. Harvard Business Review’s research on foreign direct investment consistently highlights that structured, transparent investment environments attract the most sustained international capital flows, a principle that applies equally to government programs and to fund managers building international investor relationships. Fund managers who invest the time to understand foreign direct investment at this level are building an informational advantage that compounds over time as the global capital raising environment continues to grow in complexity.
About the Guest
John Green is the Managing Partner at Latitude USA, a firm that specializes in the investment immigration space with a particular focus on foreign direct investment programs including citizenship by investment and residence by investment. John has worked with firms including Goldman Sachs, HSBC, Ernst and Young, and UBS, and has been working in the investment immigration industry for approximately 15 years. Latitude USA holds licenses in the five Caribbean citizenship by investment programs and in Malta, and the firm also serves as a government advisor, helping national governments design investment migration programs from the legislative and operational foundation. You can reach John and his team at latitudeworld.com.
Ryan Miller, BSc., MFin., is the host of Making Billions, a top 2% global podcast focused on the people, processes, and perspectives behind institutional capital raising and alternative asset management. Over the past 15 years, Ryan has helped hundreds of individuals raise millions of dollars for their funds and startups. Ryan is also the founder of Fund Raise Capital, which provides educational frameworks and capital raising infrastructure for alternative asset managers operating in the $10 million to $500 million range. Connect with Ryan on LinkedIn.
Questions Answered in This Article
How can fund managers use foreign direct investment to raise capital?
Fund managers can structure foreign direct investment capital raises by opening feeder funds or venture capital funds in countries that offer investment immigration programs, such as Portugal’s golden visa fund option. Portugal’s program requires a $500,000 investment into a venture capital fund, with 60% deployed domestically and 40% available for outside investments, in exchange for a residence permit. This creates a direct mechanism for fund managers to attract overseas investor capital through government-sanctioned immigration structures.
What is the EB-5 investment immigration strategy for attracting overseas investors?
The EB-5 program is a U.S.-based investment immigration vehicle that allows foreign investors to obtain residency by deploying capital into qualifying American projects or funds. Ryan Miller referenced George Eakins of the American Dream Fund as an operator actively using the EB-5 program as a capital-raising strategy. It represents one of several investment immigration pathways that connect overseas investor capital to domestic funds and businesses.
How does investment immigration help startups and funds raise money abroad?
Investment immigration programs create a structured, government-backed incentive for foreign nationals to deploy capital into qualifying funds, real estate, or businesses in exchange for citizenship or residency. Countries such as Portugal, Spain, Greece, and the Caribbean nations have attracted billions in foreign direct investment through these programs, channeling capital directly into private projects. Fund managers and founders who establish vehicles in these jurisdictions gain access to a global pool of investors motivated by both financial returns and residency benefits.
What are the 4 types of foreign direct investment strategies for fund managers?
The episode highlights four primary structures fund managers can use: citizenship by investment programs in the Caribbean and Malta, golden visa residence programs in Portugal, Spain, and Greece, venture capital funds registered in qualifying jurisdictions such as Portugal, and feeder funds domiciled abroad that connect to a manager’s primary fund. Each structure carries distinct capital requirements, timelines, and geographic deployment rules. Choosing the right structure depends on the fund manager’s investor base, target markets, and fundraising objectives.
Why is FDI pulling away from Western markets toward emerging economies?
Several Western nations have closed or scaled back their investment immigration programs, including the United Kingdom, Ireland, and Cyprus, reducing the FDI pathways available in those markets. The European Union has also applied regulatory pressure on member states such as Spain, Portugal, Greece, and Malta to curtail or eliminate their golden visa programs. As traditional Western channels tighten, investor capital is increasingly directed toward markets that maintain open and well-structured foreign direct investment frameworks.
How can emerging fund managers attract foreign direct investment for their funds?
Emerging fund managers can attract foreign direct investment by structuring their funds within jurisdictions that participate in golden visa or venture capital investment immigration programs, such as Portugal. Working with a licensed, reputable firm that specializes in investment immigration ensures the fund is structured correctly and meets government requirements from the outset. Managers who establish these vehicles early gain access to a growing international investor base before regulatory changes reduce program availability.
What structures do family offices use to access foreign direct investment capital?
Family offices and ultra-high-net-worth individuals typically access foreign direct investment capital through citizenship by investment and residence by investment programs, using real estate or fund contributions as the qualifying investment. Caribbean programs starting above $100,000 and European golden visas requiring $500,000 or more are the most common structures used to secure second citizenship or residency while deploying capital internationally. These arrangements serve dual purposes, providing portfolio diversification and legal residency or citizenship in stable jurisdictions.
Is foreign direct investment a viable capital raising strategy for private funds?
Foreign direct investment is a viable and increasingly utilized capital raising strategy for private funds, particularly those willing to establish vehicles in investment immigration jurisdictions such as Portugal. Portugal’s venture capital fund option has generated substantial inflows of foreign direct investment, with dozens of funds created specifically to attract immigrant investor capital under the golden visa framework. Fund managers who structure their offerings correctly and work with licensed professionals can tap this capital source as a meaningful alternative to traditional domestic fundraising channels.
Topics Covered in This Article
- Foreign direct investment as a capital raising strategy for fund managers
- Citizenship by investment programs in the Caribbean and Malta
- Golden visa residence by investment programs in Portugal, Spain, Greece, and UAE
- Foreign direct investment and Portugal’s venture capital fund golden visa option
- International feeder fund structures for accessing foreign direct investment capital
- How to select reputable service providers in the foreign direct investment immigration space
- Common structural mistakes in foreign direct investment and investment immigration applications
- Timing risk and program closures affecting foreign direct investment access
- The Investment Migration Council as a professional standards body for foreign direct investment advisory firms
- Dubai and UAE foreign direct investment golden visa programs for fund managers exploring Middle East capital
- Investor motivation and non-financial drivers behind foreign direct investment immigration programs
- Compliance and due diligence frameworks for fund managers engaging foreign direct investment channels
