Small logo Subscribe to leading news on impact investing. Learn More
The Brief Originals Dealflow Signals The Impact Alpha Impact Voices Podcasts Agents of Impact Open
What's Next Capital on the Frontier Measure Better Investing in Racial Equity Beyond Trade-offs Impact en las Americas New Revivalists
Local and Inclusive Climate Finance Catalytic Capital Frontier Finance Best Practices Geographies
Slack Agent of Impact Calls Events Contribute
The Archive ImpactSpace The Accelerator Selection Tool Network Map
About Us FAQ Calendar Pricing and Payment Policy Privacy Policy Terms of Service Agreement Contact Us
Locavesting Entrepreneurship Gender Smart Return on Inclusion Good Jobs Creative economy Opportunity Zones Investing in place Housing New Schooled Well Being People on the Move Faith and investing Inclusive Fintech
Clean Energy Farmer Finance Soil Wealth Conservation Finance Financing Fish
Innovative Finance
Personal Finance Impact Management
Africa Asia Europe Latin America Middle East Oceania/Australia China Canada India United Kingdom United States
Subscribe Log In

Ecosystem Investment Partners closes fourth conservation fund at $455 million

ImpactAlpha, February 10 – Private equity firm Ecosystem Investment Partners has been helping investors profit off of ecological restoration and conservation projects since 2007. EIP has raised nearly $1 billion from investors through three institutional funds, including $454.5 million for its latest fund, Ecosystem Investment Partners IV.

EIP’s investment approach is to set up “mitigation banks” on acquired land that both finance wetlands restoration and build “credits” that public and private developers can buy to offset expected environmental damages from their development projects (see, “Ecosystem Investment Partners: How Private Capital is Restoring U.S. Wetlands”). It’s a system that effectively trades damage in one place with restoration in another (sort of like a carbon exchange.)

The firm claims mitigation bank transactions have increased by over 2,000% in the past 25 years (see, “The surprising leader in the $36 billion global market for ‘payments for ecosystem services’”).

EIP also invests through pay for success contracts.

EIP has invested in 44 projects in 12 states covering 44,000 acres of wetlands and 176 linear miles of streams, including a 110-mile expanse across five counties in West Virginia and an 18 miles of feeder waterways into the Chesapeake Bay that, if successfully restored, will reduce harmful nitrogen and phosphorus levels. 

Its target investment size projects costing $10 million to $50 million. It ensures permanent protection through conservation easements and deed restrictions. 

Before raising its fourth fund, EIP raised $303 million for fund three and $181 million for fund two.

The firm has added four new members to its team to support its fourth fund.

You might also like...