Ludgate Investments has a close eye on the even stricter regulations for waste management following new funding plans. The firm intends to launch a larger second environmental fund that will become available near the end of 2012 or start of 2013.The aim of the fund will be to invest in the many green opportunities that are resulting from the strong North European recycling and waste sectors.
Chief executive for Ludgate Investment Gijs Voskamp, stated that they are seeing a lot of chances to invest in the pipeline right now. Over the last few years the European Union has really tightened recycling and rubbish regulations making room for green revolution. They are calling for 50% of all waste from households to be recycled by the year of 2020 to help reduce landfill dependence.
In addition the EU is also proposing the creation of mandatory collection targets to help cut back on the amount of electronic waste that heads to landfills each year.
The original Ludgate Environmental Fund was first launched on the London Stock Exchange back in 2007 and since then has managed to raise about $100 million that it then uses to invest in SMEs that are involved in energy efficiency, waste and recycling, water sectors and energy generation. Most of the companies they invest in are located within Northern Europe.
According to Ludgate the second fund will be as much as three times bigger but with a similar focus on reducing wastes and investing in the greener future. Since the first fund was initiated in 2007 it has been able to invest in 16 different companies and achieved one partial exit and two full exits resulting in gross rates of return that average about 30%.
Firm chief investment officer Bill Weil stated that in Northern Europe countries are all ready ahead of the recycling and waste improvement goals.