Build the future with your capital
We offer access to top tier climate funds via our Carbon Equity investment vehicles. Within our vehicles, Carbon Equity aggregates small tickets into single large commitments which are invested directly into the underlying fund(s).
We lower investment barriers to private markets by enabling low minimums.
We aggregate your ticket
By aggregating individual tickets, we are able to reach the high investment thresholds of top-tier climate funds.
Top-tier climate funds
We offer highly curated top tier climate funds which passed a strict climate impact and performance assessment.
We map and track interesting climate funds globally. Based on our proprietary climate impact performance assessment process we select only the top tier funds. Before we offer you access to a fund, the investment is approved by a highly experienced (external & internal) Investment Committee.
We open the investment opportunity to our customer base on a first-come, first-serve basis. An overview of our current fund investment opportunities on offer can be found on our website.
For each investment, we aggregate the tickets in a simple fund structure which invests directly in the underlying fund(s). This structure is tax transparent, which means that it will be treated as if you invest directly into the underlying Master Fund(s). This avoids double taxation on the investment proceeds.
We will keep you fully informed on the performance of the fund & share the stories and key impact milestones of all of the portfolio companies of the underlying Master Funds.
All numbers mentioned are for illustrative purposes only. No guarantee or reliance can be given on any of the projected returns.
A capital call refers to the request to transfer your committed investment amount to the Carbon Equity fund so we can meet our obligations to the underlying fund(s). The first capital call after you subscribe will be a minimum amount of EUR 100k.
Cash distributions back to you (the investor) start when the underlying Master Funds have 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.
With our impact-first approach, we select the funds that invest in companies building the technology and solutions for countries, corporates and consumers to achieve their net-zero commitments, regulatory requirements or lifestyle choices. In many industry segments we are only at the beginning of the transformation that needs to happen, so demand and pull for the right alternatives will only increase. Therefore we believe our impact-first strategy will deliver above-market financial returns and the return of a liveable planet.
Private market funds (not listed on the stock exchange) typically have high entry barriers. The average minimum investment into a single fund is EUR 1-5 million, further the market is in-transparent and requires specialist knowledge to find and select the top-tier funds.
With a feeder, we offer an investment into a single curated climate fund for instance in an attractive or high-impact vertical. Our fund offers a portfolio of climate funds, where we diversify across different industry segments and risk profiles. Depending on your risk appetite and total investable assets, you can decide to invest in the product that best fits your own personal investment preferences.
While high returns are never guaranteed, VC and PE funds do structure each deal and their overall portfolio’s to protect against downside risk. You can also opt to invest in one of our Fund of Funds vehicles, that further diversify the risk across multiple funds. We advise, however, to never invest your total investment capacity in 1 fund or asset class.
We build strong 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. Would you like to invest a lower amount? Let us know how your ideal investment product looks like!
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).
Carbon Equity sets up investment vehicles to pool the investments by our investor base and invest these in one or more Climate Venture Capital or Private Equity funds. These underlying funds are referred to as ‘Master Fund(s)’ in our documentation to differentiate from the Carbon Equity fund vehicles
When you invest in a Carbon Equity fund, you commit a certain amount to the fund as your total investment. If this commitment is higher than the minimum ticket of EUR 100k, you do not need to transfer the full cash amount at the start of the fund. We will send periodic so called “capital calls” where we will request you to pay in typically between 10-25% of your total investment (“commitment”).