European Hydropower Fund S.A.

Investments in operational hydropower plants with a focus on Scandinavia

Aquila Capital European Hydropower Fund S.A., SICAV-SIF

Legal structure / Fund structure	S.A., SICAV-SIF
Domiciliation	Luxembourg
AIFM	Alceda Fund Management S.A.
Investment advisor	Aquila Capital Management GmbH¹
Portfolio manager	Aquila Capital Investmentgesellschaft mbH²
Investment period	Period from the first closing date until the third anniversary of the final closing date³
1. Closing	December 2016
2. Closing	February 2017
3. Closing	March 2017
Final Closing	Date on which the fund has (i) an aggregate commitment amount of the target fund size or (ii) 31 December 2019
Term	Limited period expiring on the 20. anniversary of the final closing (+extension option for two successive periods of three years by decision of the Board of Directors)
Fund currency	EUR⁴
Minumum Commitment Amount	EUR 10m
Target Fund Size	EUR 200m of aggregate commitments. Commitments in excess of this amount may be accepted at the sole discretion of the Board of Directors up to a maximum amount of EUR 300m
Management fee	Investment period fee of 0.90% of aggregate commitments (during investment period) Management fee of 0.70% of aggregate capital contributions (after investment period)
Administration fee	0,20% p.a.
Disposal fee	0,50% of the gross asst value of each hydropower invstment sold
Performance fee	15% p.a. of the excess performance⁵amount of 7% IRR (hurdle rate)

Principal risks

Sedimentation risk	Hydrological risk
Counterparty risk	Regulatory risk
Erosion risk	Risk of natural disasters, e.g. flooding
Market price risk	Political risk
Risk of functional faults	Exchange rate risk
Interest rate risk

_{1 On 26.07.2016 Aquila Capital Investment GmbH war renamed as Aquila Capital Management GmbH.
2 On 08.08.2016 Alceda Asset Management GmbH was renamed as Aquila Capital Investmentgesellschaft mbH.}
_{3 Kindly note that the current prospectus is about to be amended.}
_{4 Investments in foreign currencies possible as per country allocation.}
_{5 The taret IRR describes the targeted return of the planned investments by the fund and does not constitute a binding profitability requirement or any guarantee of returns. Target IRR after local taxes and fees.}