Ecosystem Investment Partners (EIP) has closed its third fund, focusing on environmental restoration of US wetland areas, at $303 million.
The EIP III fund targeted $200 million when fundraising began last March, but institutional investors including pensions like the New Mexico State Retirement Board, endowments and high net worth individuals helped smash that target by $100 million.
Its predecessor, EIP II fund, was also oversubscribed in 2012, when it targeted $150 million and raised $181 million.
The Maryland-based private equity firm expects to make up to 15 investments, of between $10 million and $40 million each, in projects deemed conservation priorities by government agencies and organisations such as The Nature Conservancy and The Conservation Fund.
EIP brings in capital through the sale of credits earned for compliance with environmental standards for the restoration of wetlands, streams and endangered species habitats.
Adam Davis, a partner at EIP, told Low Carbon Energy Investor that the company invests in projects that meet “very vigorous” government environmental standards and sells earned credit to investors. “What we sell is outsourced compliance with environmental laws,” he said.
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