How it works
We offer direct access to individual funds via our Carbon Equity feeder vehicles. Within the feeder vehicle, Carbon Equity aggregates small tickets into a single large commitment which is invested directly into the underlying fund. The tax transparent Dutch fund for joint accounts structure is used for our feeder vehicles.
We map and track all climate funds globally. Based on our proprietary climate diligence and financial diligence process we select only the top tier funds. All fund commitments are approved by a highly experienced (external & internal) Investment Committee.
We open the commitment to our customer base on a first come, first serve basis. An overview of our available feeders can be accessed after creating an account on our website.
We aggregate all tickets in a single tax transparent feeder structure which invests directly in the underlying fund.
We will keep you fully informed on the performance of the fund, share the stories and performance of all underlying portfolio companies.
All numbers mentioned are for illustrative purposes only. No guarantee or reliance can be given on any of the projected returns.
A capital call requires you to transfer your committed investment amount through Carbon Equity to the underlying fund. A minimum amount of EUR 100k will be called in the first year of the fund cycle.
Cash distributions back to you (the investor) start when the underlying Master Fund has liquidity events. A liquidity event is an event where the shares in portfolio companies are (partly) sold or the company is brought to the public market through an initial public offering (IPO).
The average investment horizon of a Venture Capital fund is 5 years, during these years the fund will invest about 50% of the committed capital into underlying companies (start-ups & scale-ups). The remaining 50% will be reserved by the fund to make follow-on investments in the companies in their portfolio with the highest likelihood to succeed. This means that by year 5 the first investments of the fund could reach the next stage in their growth journey (sale or IPO) leading to the first cash distributions.
Committed capital plus realised return is returned to the investors via cash distributions. In this example distributions start from year 5 reaching a break-even point in year 7, where the full commitment amount is already returned to the investor, the rest is upside.
While high returns are never guaranteed, VC funds do structure each deal and their overall portfolio’s to protect against downside risk. We advise, however, to never invest your total investment capacity in 1 fund or asset class.
We build careful relationships with the VC managers to understand their selection methodology, climate impact, theory of change, approach to realising value in the portfolio (e.g. level of support, executive/expert network and follow-on syndicates) and track record. We combine this with our proprietary climate due diligence framework to see how their theory of change is aligned with our climate investment thesis.
Carbon Equity only offers top-tier private market funds with a focus to decarbonise the planet. We pool investments through our Carbon Equity investment vehicles. This means that all capital calls, distributions and fees are paid through our investment vehicles. To ensure secure and efficient fund investment & management we work with best in class partners such as Trustmoore, Finnius, Zuidbroek and Amstone.
Currently investment starts at a minimum of EUR 100K into our Carbon Equity investment vehicles. Normally, directly investing into the underlying funds can require an investment amount of EUR 1-5 million. By pooling commitments Carbon Equity can drastically reduce this entry barrier, and make these funds much more accessible.
No, you cannot cash out your investment at any moment. A typical private market fund has a duration of 10 years. This means that your full commitment + investment return is repaid by the end of this period. Distributions can start around the 5th year of the fund depending on the performance of the portfolio companies, meaning that your commitment is not locked up for the full duration of the fund (see fund lifecycle explanation).