Financial returns meet environmental impact

At Ridge, our fundamental mission revolves around uniting impactful initiatives with sustainable financial returns. Every investment opportunity offered on Ridge adheres to these objectives.

Financial returns vary across our projects, but typically involve one or more of the following mechanisms:

1. Commodity Sales: Projects engage in sustainable harvesting and sale of commodities such as timber, natural rubber, wine, coffee, seaweed, and others.

2. Carbon Credits: While some Ridge projects receive and sell carbon credits, these are supplementary revenue sources. It's essential to emphasize that our preference lies in projects not solely dependent on carbon credits. This strategy ensures more resilient and less volatile financial returns while still capitalizing on potential upsides.

3. Land Appreciation: Most of our projects revolve around land and asset ownership in regions demonstrating above-average increases in land value. This benefits retail investors if the asset is sold. However, rest assured, any sale of our assets undergoes stringent criteria checks to guarantee continued impact and sustainability.

4. Recreational Income: Certain assets within our portfolio serve recreational purposes such as hiking, fishing, hunting, and some are even situated within or adjacent to national parks. While this constitutes a smaller portion of our returns, it generates revenue while accentuating the natural beauty of our investments.

All of our projects have a positive impact on our planet, that is why we started Ridge. Our primary goal is climate impact, but we thrive to combine it with bio-diversity and social impact.

Our believe is that impact is truly sustainable when it can be combined with a viable business model. That is why we focus on projects that are are proven businesses which produce a commodity in an established industry. We partner with project owners that have developed better production methods, that are net positive for the planet and spearhead natural climate solution that are not based on donations.

Our aim is for all projects listed on Ridge to be certified in their impact. We will however make exceptions where we are certain of the positive impact through our own due diligence. This allows smaller projects to get exposure to new investors without a large upfront investment to become certified.

Ridge projects are structured within two ownership and returns frameworks:

Profit share:

Investors can invest through a bond, coupled with associated profit-sharing rights in the underlying asset. This structure allows them to capitalize on variable revenues generated from commodity sales, such as timber from a forest and/or Carbon Credits. Furthermore, investors have the opportunity to profit from the appreciation of the asset's value, participating in a potential sales premium. It's important to note that presented returns are estimates and are susceptible to market fluctuations in commodity or carbon prices.

Profit-share-based projects offer investors the advantages and potential upsides of indirect ownership, but they are also exposed to the risk of returns fluctuating due to factors like higher or lower-than-expected harvests in agricultural ventures or other unforeseen circumstances

Leaseback:

In this model, investors acquire a bond from a German GmbH which has an income agreement with a partner entity in place. Ridge typically employs a leasing structure where the project manager leases the land back at a defined rate. Following the deduction of Management Fees and unforeseen costs, the bond owner receives a stable return, aiming to mitigate variations. Crucially, both the investor and the project manager share a common goal: to optimize asset management.

While the 'sell and lease back' concept is familiar in the agricultural industry, traditionally it has been accessible only to affluent families and companies involved in land ownership. Ridge is changing the landscape by democratising this practice, making it available to all investors.

Why do we prioritize commodity-producing assets?

In our daily lives, we all require various products, yet many of these items contribute to the depletion of our planet's resources. Globally, there are innovators dedicated to transforming the way products are manufactured, focusing on producing items that benefit the planet rather than harm it. By investing in these improved production methods and subsequently consuming the end products, we complete the cycle of creating a more sustainable model for the future. To mitigate investment risks, we favor well-established supply chains that cater to large-scale product sales—essentially commodities. This reduces the risk associated with establishing new supply chains and ensures demand for specific products.

From the wood used to craft your home's furniture to the coffee and wine you savor, even down to the soles of your shoes, we have a responsibility to adopt more sustainable consumption habits. Many share this sentiment when considering where to invest their money. Ridge is here to make this transformation possible.

Investing in any asset class carries risks. This is not different when you invest in natural assets. There are risks involved and it is important that they are clearly understood. Knowing about investments risks allows you to make a risks rewards assessment and a decision if the natural assets we believe in are right for you.

Our projects face commodity-related risks, primarily tied to natural factors (natural disasters, pests), market price/demand fluctuations, and macroeconomic trends. Although natural asset investments generally improve portfolio stability with lower volatility and limited correlation to stock markets, the possibility of investment loss cannot be entirely ruled out.

Ridge consistently works to minimize project-specific risks. Through a rigorous selection process, we exclusively partner with project managers that have a proven track record, robust risk protection, and diversified assets. We employ various strategies, including insurance, to mitigate risks. Importantly, all our investment companies and financial products are based in Germany. This decision ensures strict adherence to the consumer protection laws of both German and European regulators, as well as highly transparent financial product documentation.

Every project has specific risks which are described in detail on the individual project pages. More information can also be found in the individual project documentation that is available for download.

Notice pursuant to Section 4 of the German Securities Prospectus Act:

Investing in alternative assets carries risk, the value of investments can go up as well as down and and can lead to the complete loss of the invested assets. Past performance or expected performance does not guarantee future results. Individual investors should make their own decisions or seek independent advice.

The carbon market has experienced volatility lately, with increased scrutiny shedding light on projects displaying less-than-ideal characteristics. This scrutiny has revealed varied reasons behind the challenges faced: some projects, despite good intentions, faced execution gaps from conceptualization to actual impact, while others evidenced questionable motives within an immature market.

We firmly believe that a robust carbon offsets market is pivotal for our planet and communities. It encourages projects to align with responsible practices, valuing nature's crucial role in combating climate change.

However, our investment strategy prioritizes projects executed with excellence, a focus on positive impact and financial returns, irrespective of their reliance on carbon certificates. While some projects may benefit from carbon certificates as an additional revenue source, they don't hinge their viability solely on them. We consciously avoid investing in purely carbon-offset-focused projects and steer clear of questionable initiatives that aren't sustainable for the land, communities, or investors in the long term.

We deliberately chose Germany as our country of incorporation due to its renowned reputation for maintaining a secure, transparent, and regulated financial system. All Ridge products are developed under the legal framework established by the German Regulator, by our adept team of Capital Market lawyers who prioritize consumer and investor protection.

In terms of brokerage liability for financial instruments, Ridge Capital is registered as a tied agent in accordance with § 3 (2) WpIG with the German Regulator BaFin. We conduct investment brokerage activities exclusively under the name, on behalf, and under the liability of Effecta GmbH, a securities firm registered with BaFin (BaFin-ID: 10133261).

At Ridge Capital GmbH, we collaborate with top-tier partners across all our operations. Upholding the highest standards of confidentiality and consumer protection is our unwavering commitment throughout our services.

We acknowledge the many impactful donation-based organizations dedicated to environmental protection. At Ridge, we firmly believe that financial returns and environmental impact can and should coexist. Our unique position aims not to compete but to complement existing efforts. We strive to create an efficient organization, directing over 98% of our investments towards acquiring natural assets. This approach allows us to contribute significantly to environmental protection while ensuring our investors receive the returns they deserve.

Experience the power of your impact with Ridge.

Sustainable finance is gaining momentum as a crucial means to protect the environment and combat climate change. This approach includes impact investments that prioritize environmental, social, and governance (ESG) criteria, aiming for both financial returns and positive environmental outcomes.

Green investments and climate protection projects such as reforestation and forest management concepts are becoming increasingly attractive. These projects not only address ecological concerns but also offer promising investments for the future. Climate change investing aligns long-term financial gains with environmental success, benefiting future generations.

In summary, the rise of sustainable finance and impact investing highlights the importance of addressing environmental challenges through responsible investment. By supporting green investments and climate protection initiatives, investors contribute to a more sustainable and resilient global economy. The expansion of sustainable investing will positively impact both financial markets and the planet's health.