Low Carbon Accelerator's objective is: "To provide shareholders with an attractive return on their investment primarily through significant minority holdings in a diverse portfolio of unquoted private companies providing low carbon products and services."
As the fund manager, Low Carbon Investors Limited ("LCI") identifies opportunities where LCA can exceed the target IRR of 30% within a three to five year timeframe. Returns are expected to be derived primarily from capital gains.
LCI use their knowledge of market sectors and extensive network of business and technology contacts to evaluate opportunities for investment and actively manage the LCA portfolio. LCI looks for companies with, inter alia:
- an exceptional management team with a proven track record and clear vision;
- products or services capable of immediate reductions in carbon emissions;
- defensible, proven technology, IP or know-how with a clear commercial application;
- a viable, attractive and scalable business model;
- cost competitive products which do not require behavioural change;
- real trading businesses with key commercial relationships in place;
- an opportunity to gain a large share of a new or expanding market;
- a sensible valuation; and
- an exit strategy.
LCA's interests are represented by members of the LCI management or advisory teams who sit on the boards of investee businesses. Through these individuals, LCI plays an active role in supporting the growth of the businesses by leveraging the experience and networks of the LCI management and advisory teams.
The Directors intend to manage the Company's affairs to achieve shareholder returns through capital growth rather than income. However, in the event that the Company receives dividends from its investments, the Directors may, in accordance with the Articles, determine to pay dividends from time to time to Shareholders.
It is not proposed that the Company will have any long-term or fixed structured gearing. However, the Company may borrow for the purpose of the orderly settlement of transactions, to implement any currency hedging strategy or for other general working capital purposes. Borrowings by the Company itself will not exceed 25% of the Net Asset Value at the time of drawdown.
More information on LCAs Investing Policy can be found in the Admission Document.