Access to Climate Tech Fund II

Top-tier climate funds are often closed to individual investors. They require institutional ticket sizes and only accept LPs they trust. Carbon Equity gets in because of:

• Deep networks. Our investment team has spent years building relationships with leading climate fund managers, and our backgrounds in PE, VC, and institutional investing give us credibility with the General Partners we partner with.
• A rigorous selection process. We screen the full universe of climate funds (700+) and only back the small fraction that meet our bar on returns and impact. Top managers value us as a serious, long-term partner, which opens doors to the next fund, and the next.
• Pooled capital. By aggregating commitments from our investor community, we meet the multi-million-euro minimums that top funds require, giving you access that would otherwise be out of reach.

We run a rigorous, multi-stage process to identify the small number of funds that meet our bar on both climate impact and financial returns. Each fund goes through four stages of due diligence:

• Quickscan. An initial assessment of how committed a fund is to impact, looking at its mandate, thesis, minimum impact threshold, track record, and intentionality.
• Climate due diligence. A deep assessment scoring the fund against global best practice on 15 specific criteria across ten topics.
• Financial due diligence. A deep dive into the fund's strategy, team, processes, and prior investments to ensure a satisfactory risk and return profile.
• Environmental, social, and governance assessment. A review of the fund manager's policies and performance, including alignment with the European Union's Sustainable Finance Disclosure Regulation.

Funds that clear all four stages are presented to our Investment Committee, where approval requires a unanimous decision. Less than 5% of the funds we review make it through.

Investing with Carbon Equity is easy and can be completed fully digitally:

1. Explore our funds on the website, or book a call with our team to talk through your options.
2. Create an account on our platform.
3. Reserve your investment. This is a non-binding step that lets you continue onboarding.
4. Complete your onboarding and sign your subscription form. This confirms your commitment.
5. Receive your first capital call after the next close of the fund.

Each Carbon Equity fund publishes a target net internal rate of return, which is our expectation of the average annual return after all fees over the fund's lifetime. Targets vary by fund, reflecting differences in strategy, stage, and risk:

• Infrastructure and debt funds aim for steadier, more predictable returns in the high single to low double digits, with cash distributions starting earlier in the fund's life.
• Diversified equity fund-of-funds aim for higher returns, in the low to mid double digits, with most of the return realised through company exits later in the fund's life.
• Concentrated co-investment strategies aim for the highest returns, with correspondingly higher risk and a smaller number of underlying companies.

Target returns are not guaranteed. Investments carry the risk of loss, and actual returns will depend on the performance of the underlying funds and companies. We report on progress against the target throughout the life of the fund.

Returns in private markets typically follow a J-curve. Early years show negative returns as capital is deployed and fees are paid before investments mature. As the portfolio matures and exits begin, returns turn positive and accelerate. The shape of the curve varies by fund type, with infrastructure and debt funds showing a flatter curve than venture and private equity.

For specific target returns and how they break down between cash yield and capital appreciation, see each fund's page.

Our ambassador program rewards you for sharing Carbon Equity with your network. When someone you refer mentions your name while reserving an investment in the same fund, both of you receive a 0,05% discount on your annual management fee, for the lifetime of that investment. There's no limit to how many people you can refer, but you get a maximum 0,25% discount.

An ELTIF, or European Long-Term Investment Fund, is a fund structure created by the European Union to give individual investors access to long-term investments such as private equity, infrastructure, and private debt, which were previously reserved for institutional investors.

ELTIFs come with specific protections designed for retail investors. These include lower minimum investments, a suitability assessment to make sure the product fits your goals and risk profile, a cooling-off period during which you can withdraw your subscription, and in some cases the option to request redemption at defined points during the fund's life.

In return for these protections, ELTIFs are subject to stricter rules on what they can invest in, how they are managed, and how they report to investors. The structure is regulated by the European Securities and Markets Authority and supervised at national level, in our case by the Dutch Authority for the Financial Markets.

Access to Climate Tech Fund II is structured as an ELTIF, which is why it has a lower minimum, a suitability assessment, a withdrawal right, and a limited redemption option. Our other funds are structured differently and do not offer the same retail-investor protections.

Most of our funds do not offer liquidity. You may be able to sell your investment to a third party, but we cannot assist in finding a buyer for you. There is no guarantee you would be able to sell at full value. If the purchaser qualifies as an investor, we will accept the transfer.

Access to Climate Tech Fund II is structured differently, as an European Long Term Investment Fund, and provides limited options to request redemption, subject to certain timelines, restrictions and discounts.

For any redemption request in our funds (outside the redemption window of ACT II), an administrative fee of the lower of 1% of your commitment or €500 applies for onboarding and legal documentation of the new investor.

Net internal rate of return (net IRR) is the average annual return on your investment, after all fees and expenses, taking into account when money is paid in and when it comes back.

An example: imagine you commit €100,000 to a fund. You pay it in over the first few years as the fund makes investments. Many years later, you receive €200,000 back as the fund's investments are sold. You doubled your money, but how good was that as an annual return? That depends on how long it took. Doubling your money in 7 years is a much better outcome than doubling it in 15 years, and net IRR is the calculation that captures that difference. Roughly, doubling in 7 years works out to about 10% net IRR, while doubling in 15 years is about 5%.

The "net" part means the calculation already takes into account our fees, the underlying fund managers' fees, and any other expenses, so it reflects what you actually receive, not the gross performance of the underlying investments.

Net IRR is the standard way to measure performance in private markets because it accounts for the fact that capital is called gradually and distributions come back over many years. A fund that returns your money quickly will have a higher net IRR than one that returns the same amount more slowly.

Each Carbon Equity fund publishes a target net IRR, which is our expectation of the average annual return after all fees over the fund's lifetime. Targets vary by fund, reflecting differences in strategy, stage, and risk. Target returns are not guaranteed, and actual returns will depend on the performance of the underlying funds and companies.