Ecosystem Integrity Fund III

Ecosystem Integrity Fund (“EIF”) is a sustainability-focused venture capital firm. In January, we launched our third VC fund, Ecosystem Integrity Fund III, L.P. (“Fund III”) with a target of $150M. To date we’ve raised about half of the fund, made our first three investments, and expect to hold a final close at the end of 2017.

EIF generates high VC returns by investing in early stage companies that contribute to environmental sustainability. Investment team members have been working together continuously since 2007, focused exclusively on sustainability. However, the fund doesn’t compromise upside for “impact,” rather we believe that investing in the inevitable transformations of industries to more efficient modes of operation will drive outsized returns.

EIF Fund I is a 2011 vintage, $20M fund with six portfolio companies and two realized exits. Net to LP IRR is 38.4% and DPI is 1.8x, ranking EIF I #1 for the 2011 VY in the Cambridge Associates VC benchmark. EIF Fund II is a 2014 vintage, $57M fund with six portfolio companies, all of which doubled revenues in 2016.

EIF is fundamentally a value investor, targeting companies in niches that don’t attract capital from mainstream investors. EIF’s strategy as an early stage investor is unique in that we seek substantial ownership positions (typically 20-40%) in capital-efficient, revenue-generating companies, and we do not generally take technology risk. Comparatively modest exits drive outstanding fund level returns.

Financial description

EIF targets above market venture capital returns, with private-equity type risk