Craigmore is an Investment funds group managed by Craigmore Sustainables LLP, a London-based Fund Manager which has applied to become SFA approved.

Craigmore’s investment themes are:

1. Sustainable Resources
2. Yield
3. Low risk
4. “Bio”

1. By sustainable we mean investments in enduring natural resources, greenhouse gas reduction and renewable energy. We consider farms and forests to be sustainable assets. We favour concrete resources to investment in abstractions such as intellectual property and goodwill.
   
   
2. By yield we mean assets that will generate, within a reasonable time, a positive cash-flow to shareholders. It is traditional for farmers and other investors in land to accept lower rates of return than in other industries. In part this is due to the non-depreciating nature of the asset and the low long-term risks of the investment: there is a low likelihood of substitution of food production assets by alternative technology. Craigmore’s aim is to enhance the low but predictable returns on land ownership with new strategies, such as carbon mitigation.
3. By low risk we mean investments whose selection and investment management suggests only a low probability of severe loss of capital. Projects should have low exposure to political,  technological and project execution risks. Projects should use debt only where business risks are carefully managed to acceptable levels.
4. By “Bio” we mean Craigmore should continue to build on its knowledge and expertise in asset classes which involve growing things, or which deal with biology. Thus forestry, agriculture, horticulture, anaerobic digestion, pyrolysis (charcoal making) might each be appropriate. Craigmore may, in future, invest in a solar electricity farm (and we presently hold some of our liquidity in bond portfolios) but these non-biological activities are likely to absorb only a minority of our funds. We think we can do more for our investors by focusing on building deep knowledge and relationships in the areas of farming and biology.

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Craigmore Forestry

Craigmore’s flagship fund is Craigmore Forestry NV. This carbon forestry fund was capitalised in late 2009 with over €10 million of private capital.

Craigmore Forestry invests in forestry assets that can generate revenues both from the sale of carbon credits and from the harvest and sale of timber. Since New Zealand has the world’s first carbon forestry compliance regime, as well as a vibrant softwood forestry industry, Craigmore’s initial asset portfolio has been built in New Zealand.
           
In time, Craigmore will look to expand (and diversify) its forestry operations to other regions. We will only do so once the risks of investing in such regions are acceptable to our investors.

Craigmore Credit

A second fund managed by Craigmore is Craigmore Credit NV. This Fund is a liquidity fund, to be used to house excess liquidity while sustainable projects suitable for the main Funds are researched, negotiated and ultimately invested in.

Craigmore’s Funds are managed to generate total returns for investors (of capital and cash flow), after fees, of between 8% and 20% per year, with a target minimum average return of 12% compound over five years.

Craigmore’s Management and Advisory Team

The Craigmore group’s investment manager, Craigmore Sustainables LLP, is staffed by three finance and investment management professionals in its London office.

A further three forestry management professionals, based in New Zealand, form Craigmore’s core forestry management  team.

The core Craigmore team of six is complemented by an Advisory Board – made up of experienced fund managers, foresters, environmentalist, financiers and farmers. This Advisory Board consults at least once a month and helps Craigmore both to control existing projects, and to plan new ventures. Some of the Advisory Board also fulfil part time execution roles. 

Craigmore has commissioned/built proprietary software called Carbon Alpha: forestry. This is used to value and to manage the risks of carbon forestry assets.

The Craigmore Funds were seeded by the Founders’ family trust funds. The Elworthy trust will keep a substantial majority of their family’s non-property savings in the Funds.