Ecosystem Investment Partners (EIP) has closed its third fund at USD303 million, surpassing its USD200 million target. Like its predecessors, Ecosystem Investment Partners III LP will invest in land-based environmental offset markets.
EIP’s investment strategy remains focused on the Land-Based Environmental Offset (LEO) markets established to offset or “mitigate” unavoidable, permitted impacts to wetlands, streams and other important natural resources throughout the United States. In order to capitalise on the LEO markets, EIP acquires, entitles, restores, sustainably manages and ultimately divests properties that generate revenues through the sale of wetland, stream, endangered species and other environmental credits to entities seeking compliance under these and other environmental regulations that require offsets to unavoidable impacts. Additionally, EIP selectively pursues investments in secondary LEO markets such as Natural Resource Damage Assessments (“NRDA”), water quality offsets and water quantity trading.
EIP received strong support from its existing global investor base while also adding a new and diverse group of well-respected institutional investors, including pension funds, endowments, foundations, financial institutions and families.
“We are extremely pleased to be partnering with such an esteemed group of new and existing investors closing our third fund at a level well above our target and in such a rapid timeframe. The entire EIP team is excited at the prospect of providing strong risk-adjusted returns to our investors, while also being an integral part of restoring and conserving critical natural resources throughout the US,” says Fred Danforth, Managing Partner of EIP.
EIP’s targeted investment strategy addresses the strong demand from many sectors to meet the “No Net Loss” of natural resources requirements of federal, state and local environmental laws. EIP seeks to produce strong risk adjusted returns for investors by servicing this demand through high-quality ecological restoration and protection of critical conservation properties, thus creating a long-lasting and positive impact to the environment.
EIP has deep and long‐standing relationships with the key government natural resource agencies and the major conservation Non‐Governmental Organisations, which provide it with unparalleled knowledge of the LEO markets and access to some of the most desirable and ecologically significant properties in the U.S.
Nick Dilks, Managing Partner at EIP, says: “EIP is eager to expand our investing activity in this segment, bringing large-scale, high quality and cost-effective environmental offset solutions to our nation’s energy, mining, public works, industrial and commercial developers. As the leading provider of private capital for performance-based ecological restoration and conservation, EIP is proud to be a part of the growing restoration economy in the US that is creating jobs while balancing the need for both economic growth and environmental protection.”
EIP III expects to strategically make 10 to 15 investments across the US in markets with the largest and most active need for land based environmental offsets. EIP targets investments between USD10 and USD40 million (no leverage utilised), based on properties between 1,000 to 30,000 acres in size and deemed conservation priorities by major conservation organisations or state/federal natural resource agencies.
Ryan Mueller, Managing Director at Monument Group, says: “Monument Group was once again privileged to work with the EIP team and represent this distinctive strategy. EIP is unparalleled in its expertise and experience in the environmental investment sector.” He further commented that, “being associated with EIP is consistent with Monument Group’s history of working with preeminent firms across the alternative investment spectrum globally.”