Earthworm EIS

EW Cap, formerly known as Earthworm Capital, is a specialist in environmental EIS investment opportunities. It invests in a range of sectors, from waste management and recycling to renewable energy and power generation. It manages over £35 million of assets.

Investors will hold around three investee companies. The fund has to date invested in businesses focused on processing organic waste (food, garden, wood and/or water waste). EW Cap has built eight waste and renewable energy facilities with a further 18 in the pipeline (as at March 2018). It has contracts in place with local authorities, waste processors, waste management companies and waste logistics businesses. This should provide a diverse and high-quality customer base and predictable income streams, although there are no guarantees.

The fund has identified a number of EIS opportunities ready for investment, with planning consent already in place. These are mainly recycling companies with local authority contracts to provide composting or waste water treatment services.

The fund targets a minimum tax-free return of £1.20 over a 4-5 year period, not guaranteed. 

Risks

As with all EIS, investors’ capital is at risk and the investments have low liquidity. Investors should not invest money they cannot afford to lose. Tax rules can change and the value of tax benefits will depend on individual circumstances. Please see the provider's documents for more details.

Fees & charges

A summary of the fees and charges is shown below. Please see the provider's documents for more details.

Full initial charge 6%
Wealth Club initial saving 0%
Net initial charge through Wealth Club 6%
Annual charge 2.5%
Performance fee 30%

More detail on the charges

Wealth Club aims to highlight investments we believe have merit, but you should form your own view. You should decide based on the provider's documents and ensure you have read and fully understand them before investing. This short review is a marketing communication. It is not advice or a personal or research recommendation to buy the investment mentioned. It does not satisfy legal requirements promoting investment research independence and is thus not subject to prohibitions on dealing ahead of its dissemination. June 18

The details

Type
Fund
Sector
Environmental
Target return
£1.20 per £1 invested
Funds raised / sought
-
Minimum investment
£10,000
Deadline
Discretionary

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