Earthworm EIS

Aiming to allot before Royal Assent

Earthworm is an asset- and contract-backed EIS fund that invests in businesses focused on processing organic waste (food, garden, wood and/or water waste). 

The investee businesses are developing, purchasing and constructing buildings, plant and machinery. This should provide a significant level of asset protection.

In addition, the investment should be backed by contracts with local authorities, waste processors, waste management companies and waste logistics businesses. This should provide a diverse high-quality customer base and predictable income streams, although there are no guarantees. 

Demand is supported by legislation that requires local authorities to reduce the volume of biological waste they send to landfill.

Moreover, local authorities can achieve sizeable cost savings by using alternative methods of waste disposal. 

The fund has identified a number of EIS opportunities ready for investment (with planning consent already in place), 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. This is not guaranteed. 

EW Cap, or Earthworm Capital as it was originally called, is a specialist in asset-backed EIS environmental investment opportunities. It manages over £35 million of investors’ capital and oversees investments in a range of sectors from waste management and recycling to renewable energy and power generation. 

Please remember, like all EIS investments, this is high risk. You should not invest money you cannot afford to lose. Returns and timing of the exit are not guaranteed. Tax benefits depend on circumstances and tax rules can change. 

The details

Type
Fund
Sector
Environmental
Target return
£1.20 per £1 invested
Funds raised / sought
£4.6 million / £15 million
Minimum investment
£10,000
Deadline
6 March (bank transfers only) for allotment before Royal Assent (not guaranteed)

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