Investment Strategy
The objective of the Fund is to deliver to investors a significant level of capital growth in the medium to longer term by building a diverse portfolio of investment holdings in Environmental/Cleantech companies. The Investment Adviser will look to do this by combining its already proven track record of investing in and helping build successful businesses in this area with the current rapid growth in investment demand and opportunities within the Environmental/Cleantech Sector. Ludgate’s track record is described in more detail in Part III of the AIM Admission document, contained in this website under Investor Relations.
As is currently its practice, the Investment Adviser will look to maximise returns and reduce investment risks through an active investment approach and an ability to provide important value-added services to portfolio companies throughout the life of each investment.
The Investment Team intends to concentrate mainly on investments at the development capital (expansion) or pre-IPO stage. Whilst not wanting to restrict the Fund to any particular geographical region, the Investment Adviser expects to concentrate its sourcing of investments largely from the UK, Continental Europe, Israel and Australia.
The broad investment sectors which will be considered by the Investment Team include:
- energy efficiency and alternative energy sources;
- water treatment and management;
- waste management and recycling (resource recovery);
- industrial process advances; and
- emission reduction technologies.
Investment Criteria
Environmental/Cleantech companies invested in by the Fund will need to demonstrate a combination of the following attributes:
- an experienced management team with technical expertise and business acumen appropriate to the sector;
- leading edge or breakthrough technology with a sustainable business model and the possibility of transforming an industry;
- defensible intellectual property via the ownership of patents or processes that provide protection to the technology or process and facilitate commercialisation;
- global market potential with high existing or expected growth rates;
- a scalable business model and a competitive advantage as well as broad potential applications;
- a strong customer value proposition; and
- the potential for a clear and identifiable exit strategy within a three to five year time frame, typically either by listing on a stock exchange (such as the London Stock Exchange) or by trade sale, and the potential for a 3 to 10 times investment return.