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Hardman & Co

Earthworm EIS Fund EW Cap / Thompson Taraz Managers

Hardman & Co Report Report DownloadsThe Fund’s investment strategy is to invest in a portfolio of EIS qualifying companies that will operate waste management and recycling facilities in the UK; it plans to have operations at eight sites within the next few months.The Fund’s investment strategy is to invest in a portfolio of EIS qualifying companies that will operate waste management and recycling facilities in the UK; it plans to have operations at eight sites within the next few months.

Why Invest?

Strategy: Exposure to a portfolio of plants to manage and recycle organic waste: the £86+/tonne Landfill Tax makes traditional disposal a far more expensive option. Operations: Although there will be some heads of terms in place before investment, further contracts and good management will be required to reach target returns.

 

The Investment Manager Team: EW Cap has a strong team with experience in planning and developing projects in a variety of environmental areas. Track record: EW Cap managed a return of £1.15 over 4 years for the one EIS company that has surpassed the 3-year EIS holding period

 

Nuts & Bolts

Offer period: Further tranches will be issued in tax years 2017/18 and 2018/19. Diversification: The aim is to invest in at least three waste management and recycling companies per investor: the latest tranche is invested in four.

Valuation: Updates will be provided every 6 months.

 

Specific Issues

Fees: All fees are charged directly to the investee companies. Annual fees are reduced from year 5 onwards.

Performance fee: This fee only applies if the return exceeds the £1.20 per £1 invested threshold. The Fund receives 30% of the investor share of any such surplus on a portfolio basis.

Sourcing:  It is expected that Sycamore Planning, which is owned by a former member of the EW Cap team, will be contracted to develop the sites and will be paid accordingly. This arrangement is new and the company is indirectly connected to EW Cap. The non-executive Director will need to ensure this process is managed effectively.

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Disclaimer: Statements in this article should not be considered investment advice, which is best sought directly from a qualified professional.