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ESG-focused Conservation Equity launches

Kyle Bass, a founder and CIO of Hayman Capital Management, is serving as CEO.

Conservation Equity Management LP, a private equity firm focused on environmental sustainability and conservation, has debuted. Kyle Bass, a founder and CIO of Hayman Capital Management, is serving as CEO.

PRESS RELEASE

DALLAS–(BUSINESS WIRE)–Conservation Equity Management, LP (“Conservation Equity”), a private equity firm focused on environmental sustainability and conservation, today announced its official launch. The firm was founded by CEO Kyle Bass, the Founder and CIO of Hayman Capital Management and Principal Terry Anderson, a renowned conservationist and land management expert.

Mr. Bass and Mr. Anderson believe that the private markets for rural land and hard assets have a more attractive and non-correlated risk profile than public markets. Conservation Equity’s objective is to achieve superior risk-adjusted, long-term capital appreciation by investing in large parcels of undeveloped land in Texas and surrounding states where there is a significant opportunity to raise the value of ecosystems, mitigate environmental impacts, create biodiversity, and promote permanent conservation. The firm will target properties primed for conservation and will selectively pursue the creation and sale of environmental credits to mitigate wetland, stream, or endangered species habitat destruction, while also providing incremental income for sustainable purposes such as renewable energy development, sustainable forest management, regenerative cattle grazing, and carbon sequestration.

Mr. Bass said, “This is the right moment for Conservation Equity. As more companies and people move to Texas and other pro-business, low-tax states, there will be devastating environmental consequences, forcing firms to consider their physical environmental impacts, carbon footprints, and mitigation options. As a result, conservation mitigation will be in high demand for decades to come.”

“Conscientious investors are increasingly demanding larger percentages of their investment portfolios be invested into vehicles that offer a positive impact on the environment without sacrificing returns. Conservation Equity seeks to capitalize on meaningful trends in geography, migration, central bank balance sheet expansion, and rural land as an asset class in order to offer investors both purpose and profits. I am delighted to be joined on this new journey by Terry Anderson, who has decades of experience in private sector natural resource management, conservation investment, and mitigation banking. His industry-leading knowledge and the diverse skills and backgrounds of our team will be invaluable.”

Mr. Anderson said, “There is a substantial opportunity to acquire larger timberland and rangeland parcels as ESG solutions to carbon capture, utilization or storage (CCUS), biodiversity offsets, and as hedges to inflation risk. As such, I am thrilled to combine my environmental conservation and mitigation experience and Kyle’s proven investment track record to launch a unique investment firm that we believe is well-positioned for long-term success.”

Conservation Equity also announced that it has completed its first two transactions:

Bahia Grande Conservation Parcel – a 479-acre coastal habitat in Cameron County, TX, that provides the opportunity to generate mitigation offsets for impacts occurring in the lower Rio Grande Valley within the Lower Laguna Madre ecosystem through ecological restoration and enhancement. The property is identified as a Priority Area of Conservation in multiple watershed studies and initiatives by federal and state conservation groups.

Cherokee Ridge River Farm – a 3,501-acre property and one of East Texas’s premier privately owned forest holdings in Cherokee County, TX, that has significant ecosystem service potential in the form of robust water quality, carbon storage, biodiversity, cultural and historical resources, and other societal values.

Mr. Bass added, “The Bahia Grande and Cherokee Ridge properties are both outstanding opportunities to create value by employing various levels of conservation and mitigation strategies. Conservation Equity Management has a robust pipeline of investments that we are excited to pursue in the coming years.”

About Conservation Equity Management, LLC
Founded in February 2021, Conservation Equity Management is a private equity firm focused on environmental sustainability and conservation. Led by Co-Founder and CEO J. Kyle Bass and Co-Founder and Principal Terry Anderson, together with 13 team members and strategic partners throughout the U.S., Conservation Equity invests in conservation mitigation, forestlands, rangelands, and alternative energy infrastructure strategies. For more information, please contact Steele Schottenheimer at ss@cem-tx.com or 214-347-8045.