Grasshopper - Fondskonzept Clean Water Fund

Grasshopper Investment Concepts and Innovative Business Models

Closed Fund "Grasshopper Clean Water Fund"

 

In many countries the lack of clean drinking water is of particular political, economic and social importance. In these places water security is a top priority - often considered more critical than energy and power supply.

Among closed-end funds Grasshopper Investments is currently the only one to allow private investors to invest in the key growth markets of the water sector. The fund concept is  based on many years of expertise in the global water market and has unique characteristics implemented for the first time in a closed fund concept.

Overview:

  • Ethical investment in drinking water treatment plants and the global growth market water
  • The National Innovation Prize of Germany for the used innovative technology
  • Maturity of 8 years



Future growth market water:

  • Contaminated drinking water and resulting diseases are among the world's major death causes
  • in almost all countries a large demand for investment in water infrastructure, thus also water disinfection exists due to an increasing water consumption and concurrently increasing water scarcity
  • Resulting in a high global demand for innovative water treatment technologies
  • Humans need water; only disinfected water is drinking water
  • The fund targets the key markets with the highest growth potential for clean drinking water. These markets are primarily in Asia, the Middle East, South America and Eastern Europe
  • German manufacturer as a technology partner with market-proven technology and references in 23 countries and many industries (Airbus, public water utilities, hospitals, hotel chains, agriculture, etc.)




Income and security concept:

  • Fund is based on an equipment leasing concept - similar to container leasing concepts: water treatment units  purchased by the fund are leased, sold or made available by operator models to clients worldwide (each client can be provided with an individual financing model)
  • By distributing the fund investments across various industries, public and private company clients and across several countries a broad diversification of risk is accomplished
  • With many customers of the fund binding project contracts were agreed upon before the start of the placement
  • To further mitigate risk a technical protection is implemented; automatically disabling the equipment in case of client default
  • Residual risks (rent loss of individual customers, currency risk, warranty risk) were shifted to the German manufacturer and technology partner; manufacturer guarantees yield and a minimum annual income for each unit deployed with clients
  • Significant upside potential through additional sales of water disinfections by the Fund's and exclusive distribution agreements for high-growth markets such as China




Exit:

  • The fund at has the contractually secured right to have all assets purchased at fund maturity
  • Upside potential of the fund due to a sale of assets at a higher price than the contractually secured right to have all assets purchased at fund maturity
  • The issuer only participates on returns higher than the contractually secured right to have all assets purchased at fund maturity



Concept:

  • Pure equity fund without external capital exposure
  • Prospected compliant with German IDW S4 standard
  • Simple and transparent legal fund design
  • no dark pool
  • No conflict of interest of the issuer with the German manufacturing and technology partner, the trustee and the funds inspector




Impressum
DE / EN