Earthworm EIS

Earthworm, formerly known as EW Cap, 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 £80 million of assets.

Investors will hold a minimum of three investee companies. The fund has to date invested in businesses focused on processing organic waste (food, garden, wood and/or water waste). Earthworm has built eight waste and renewable energy facilities, secured sites for two reserve power plants and has developed a series of solar farms over the past few years. 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 six 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%
Performance fee 30%

More detail on the charges

Wealth Club aims to make it easier for experienced investors to find information on – and apply for – tax-efficient investments. You should base your investment decision on the provider's documents and ensure you have read and fully understand them before investing. This 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.

The details

Target return
Funds raised / sought
£14.8 million raised
Minimum investment
Last updated: 31 January 2019

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