By Gerelyn Terzo, Global AgInvesting Media
Real asset private equity firm Ecosystem Investment Partners (EIP) has closed its fifth fund, Ecosystem Investment Partners V, at more than $400 million. The latest fundraising catapults the firm’s total capital raised since inception across its investment vehicles to approximately $1.5 billion. As a specialist in natural capital, EIP targets large-scale restoration projects for wetlands, streams and habitats across the U.S., leveraging its expertise in environmental restoration and a history of proven investments in the natural capital sector. Once it restores wetlands, it sells those credits associated with the projects.
Based in Baltimore, Maryland, EIP capped its latest fundraise with $57 million from a roster of both returning and new LPs, drawing particularly keen interest from European backers. Among the participants were commitments from Ingka Investments as well as Danish pension funds Sampension, Lærernes Pension and AP Pension. Rounding out the roster were a German family office, a Danish foundation and others, highlighting the transatlantic pull of natural capital as a portfolio stabilizer amid volatile markets.
The Baltimore-based firm channels these funds into large-scale restoration and conservation projects across the U.S., building mitigation banks that yield environmental offsets. These credits, essentially tradable permissions to offset ecological pressures, are purchased by private developers and government entities to offset activities surrounding the development of infrastructure, housing, etc., while adding diversification to an investment portfolio.
EIP Co-Founder and Managing Partner Nick Dilks stated, “The strong support from new and returning investors, including particularly significant demand from Europe, reflects increased global recognition of the growing opportunity set and the attractive and uncorrelated returns of investing in nature-based solutions. This backing enables us to continue our efforts to deliver compelling results for our limited partners while driving tangible, large-scale environmental outcomes across the U.S.”
Fund V has already begun deploying capital, including $125 million across nine projects stretching from Florida to California. Assets include a combination of greenfield mitigation banks poised for development as well as the acquisition of existing portfolios of assets. The goal is to restore over 8,000 acres of wetlands and wildlife habitats, along with miles of streams. Restored wetlands and streams enhance soil stability, water retention and biodiversity, guarding against climate risks to protect crop yields and farm viability.
Monument Group Partner Ryan Mueller, which served as global placement agent on the latest capital raising, commented, “EIP has established itself as the institutional leader in a compelling and expanding market that we believe has uniquely delivered both strong financial returns and positive environmental impact. The successful close of EIP V—achieved despite a highly challenging fundraising environment for natural resources-focused strategies—underscores investors’ confidence in the firm’s experienced and tenured team, differentiated approach, and long track record of generating attractive, uncorrelated returns. We are proud to have once again supported EIP and look forward to their continued success.”
Since its founding in 2006, EIP has restored over 53,000 acres of wetlands and 260 miles of streams, blending measurable environmental gains with performance that has piqued institutional interest even in a choppy fundraising environment for resource strategies.
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