The OnePlanetCapital Climate Change EIS Fund is a Sustainable Impact fund that will provide exposure to a small portfolio of climate-tech companies. The focus will be on B2B companies, with exposure to five sectors: energy; transport, mobility and logistics; building and construction; packaging, waste and recycling and technology. The investment process includes a solid process to measure the impact of investments. The investment team are all former entrepreneurs, with six exits between them.
Why invest
Positives
- Strategy: Sustainable Impact fund with exposure to a small portfolio of primarily B2B climate-tech companies, focused on five sectors.
Issues
- Track record: Young portfolio with no exits to date and limited unrealised movements.
The investment manager
Positives
- Team: The team brings strong entrepreneurial experience, having started, grown and sold several businesses.
Issues
- Small team: OnePlanet’s team is small. While adequate for current operations, it will need to expand in due course.
Nuts & bolts
- Duration: The fund is evergreen, with a target of three closes a year.
- Diversification: The manager expects to provide 6-8 investments for each closing, with a deployment targeted within six months, with the March close being invested in the same tax year.
- Valuation: Changes at next financing.
Fees
- Fees: The aim is to spread costs broadly evenly between investors and investee companies.
- Performance fee: Charged at 20% on aggregate returns with a 120% threshold.
Risks
- Target returns: The target return of 3x suggests a high-risk investment strategy.
- Companies: Supplying risk capital to early-stage, technology companies at the start of commercialisation. There will be a spread of company returns, as the successful ones will do very well, but those that fail may do so completely.
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