Where impact and returns reinforce each other
Put the best climate and investing experts within private equity funds to work for you and enjoy a seamless investing process.
Impact investing happens in private markets — startups and scaleups depend 100% on private capital to finance growth and product development. However, access to invest in these companies remained limited to a select group of wealthy, well-connected investors. Not anymore!
Climate tech founders normally partner with the best private equity funds. These funds typically require a personal connection and high capital requirements (2-10mln), making them unreachable to everyday investors.
Access for all
By bundling our investor's capital together, we give more individuals access to high-impact climate funds. This results in more money directed to climate companies reliant on private capital to reach the masses.
We select the best investment teams
We map and track climate private equity funds globally based on our proprietary climate impact assessment and financial diligence. Only 5% of climate funds make it through our diligence process. In this way, our investors gain access to world-class investment teams focused on true climate impact and financial returns.
The selection process
1. Fund landscaping
Our investment team monitors a global landscape of over 800 climate private equity (venture capital, growth equity and buyout) funds.
2. Climate diligence
Carbon Equity has developed a proprietary climate diligence scorecard that aims to select funds whose team, processes, incentives and governance structure are fully aligned to realizing their stated climate goals.
3. General fund diligence
Four of our key diligence factors: team, strategy, performance and terms. Exceptional funds are typically run by experienced and diverse teams. They have strong processes in place, a clear competitive advantage, proven value-adds for companies and the consistent ability to deliver great results.
4. Fund approval
Our Investment Committee is composed of senior investment team members and qualified external committee members. Before we offer you access to a fund, the Investment Committee must unanimously approve it.
Your investment journey
Frictionless climate investing starts here. Follow the step-by-step process below to see for yourself.
Select your strategy
Choose between a direct and/or a portfolio fund investment. Then, decide on your investment amount, request your allocation and start the onboarding process.
Invest in a diversified selection of funds (5-10) rather than one fund. An average portfolio means your investment will go to 100-200 climate companies.
A direct fund investment allows you to invest into a single venture, growth or buyout fund. An average fund invests in around 20-40 companies.
Your capital is bundled
Carbon Equity pools your commitment with other individual investors to let you reach the requirements of investing with first-class investment teams — at much lower minimum amounts.
The next steps
1. Capital calls
A capital call is the request to transfer your committed investment amount. This allows us to meet our obligations to the underlying fund(s). The first capital call will be 15% of your commitment with a minimum of 100K, which typically happens a few weeks before a fund closes.
2. Cash distributions
Every time a company is sold or partially sold, the fund will distribute the proceeds from the sale to investors. There are different ways for funds to exit their investments, including taking a company public, a strategic sale or a management buyout.
3. Investment horizon
If you invest with Carbon Equity, you commit money for the full lifetime of the fund. Funds typically have a duration of 10-13 years, but that doesn’t mean you won't see money back before the end date. Any time a portfolio company is sold or goes public, you receive your share of the proceeds. On average, you get your initial investment back within 5-7 years, and your additional proceeds come in the years after.