Ecosystem Investment Partners closed its third fund at $303 million, surpassing its $200 million target. Like its predecessors, Ecosystem Investment Partners III LP will invest in land-based environmental offset markets. Ecosystem raised $180.7 million for its second fund in 2012. Monument Group Inc served as exclusive placement agent.
Baltimore, MD, February 16, 2016 – Ecosystem Investment Partners (“EIP”), a leading private equity firm, today announced the final closing of its oversubscribed fund, Ecosystem Investment Partners III, L.P. (“EIP III”). With $303 million of equity capital commitments, EIP III exceeded its $200 million target. Monument Group, Inc. once again served as exclusive placement agent.
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 capitalize 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 U.S.,” said 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 Organizations, 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, noted, “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 U.S. in markets with the largest and most active need for land based environmental offsets. EIP targets investments between $10 and $40 million (no leverage utilized), based on properties between 1,000 to 30,000 acres in size and deemed conservation priorities by major conservation organizations or state/federal natural resource agencies.
Ryan Mueller, Managing Director at Monument Group, remarked, “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.”
Monument Group, Inc. served as placement agent for EIP III, while Choate Hall & Stewart LLP provided fund formation counsel.
About Ecosystem Investment Partners
Headquartered in Baltimore, Maryland, Ecosystem Investment Partners (“EIP”) is a private equity firm established in 2006 to make investments that capitalize 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. EIP’s primary investment focus is on large-scale mitigation banking opportunities enabled by the federal Clean Water Act of 1972 and Endangered Species Act of 1973. In order to capitalize on the LEO markets, EIP acquires, entitles, restores, sustainably manages and ultimately divests large rural 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.
About Monument Group
Monument Group is a leading, independent private fund placement agent managed by a senior team with significant buy‐side investment heritage. Since its inception in 1994, Monument Group has assisted a range of general partners around the world to raise 76 funds, totaling $84 billion of equity. These clients represent a broad variety of investment strategies including buyouts, debt, distressed, energy and natural resources, growth, infrastructure and real estate. Monument Group has offices in Boston, Hong Kong, London and Tokyo. To learn more about Monument Group, please visit www.monumentgroup.com.
Monument Group, Inc., is a member of the Financial Industry Regulatory Authority (FINRA); Monument Group Europe LLP is authorized and regulated by the Financial Conduct Authority; Monument Group, L.P. is licensed as a Type II Financial Instruments Dealer in Japan; Monument Group (HK) Limited is licensed to conduct Type 1 regulated activities in Hong Kong.
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