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 – important

This, like all investments available through Wealth Club, is only for experienced investors happy to make their own investment decisions without advice.

EIS / SEIS investments are high-risk so should only form part of a balanced portfolio and you should not invest money you cannot afford to lose. They also tend to be illiquid and hard to sell and value. Before you invest, please carefully read the Risks and Commitments and the offer documents to ensure you fully understand the risks. 

Tax rules can change and benefits depend on circumstances.

This EIS / SEIS fund invests in early-stage businesses which are more likely to fail than larger ones. So you should expect a number of failures in the portfolio.

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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