# Earthworm EIS Fund EW Cap / Thompson Taraz Managers

- Link: https://www.directorstalkinterviews.com/earthworm-eis-fund-ew-cap-thompson-taraz-managers/412734133
- Published: 2017-08-25T10:16:34+01:00
- Author: Giles Arbor

[⌊Hardman & Co Report Report Downloads⌉⌊Hardman & Co Report Report Downloads⌉[The Fund’s
investment strategy is to invest in a portfolio of EIS qualifying companies that
will operate waste management and recycling facilities in the UK; it plans to have
operations at eight sites within the next few months.The Fund’s investment strategy
is to invest in a portfolio of EIS qualifying companies that will operate waste 
management and recycling facilities in the UK; it plans to have operations at eight
sites within the next few months.

##  Why Invest?

**Strategy:** Exposure to a portfolio of plants to manage and recycle organic waste:
the £86+/tonne Landfill Tax makes traditional disposal a far more expensive option.
Operations: Although there will be some heads of terms in place before investment,
further contracts and good management will be required to reach target returns.

 

**The Investment Manager Team:** EW Cap has a strong team with experience in planning
and developing projects in a variety of environmental areas. Track record: EW Cap
managed a return of £1.15 over 4 years for the one EIS company that has surpassed
the 3-year EIS holding period

 

## Nuts & Bolts

**Offer period:** Further tranches will be issued in tax years 2017/18 and 2018/
19. Diversification: The aim is to invest in at least three waste management and
recycling companies per investor: the latest tranche is invested in four.

**Valuation:** Updates will be provided every 6 months.

 

## Specific Issues

**Fees:** All fees are charged directly to the investee companies. Annual fees are
reduced from year 5 onwards.

**Performance fee:** This fee only applies if the return exceeds the £1.20 per £
1 invested threshold. The Fund receives 30% of the investor share of any such surplus
on a portfolio basis.

**Sourcing:**  It is expected that Sycamore Planning, which is owned by a former
member of the EW Cap team, will be contracted to develop the sites and will be paid
accordingly. This arrangement is new and the company is indirectly connected to 
EW Cap. The non-executive Director will need to ensure this process is managed effectively.

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