Ecosystem Investment Partners III, L.P.

United States of America

Last updated 12 May 2020, by Impactyield.

Edit this fund

Headquartered in Baltimore, Maryland, Ecosystem Investment Partners (“EIP”) is a private equity firm established in 2006 to make investments that capitalize on the Land-Based Environmental Offset (“LEO”) markets established to offset or “mitigate” unavoidable, permitted impacts to wetlands, streams and other important natural resources throughout the United States. EIP’s primary investment focus is on large-scale mitigation banking opportunities enabled by the federal Clean Water Act of 1972 (“Clean Water Act”) and Endangered Species Act of 1973 (“Endangered Species Act”). In order to capitalize on the LEO markets, EIP acquires, entitles, restores, sustainably manages and ultimately divests large rural properties that generate revenues through the sale of wetland, stream, endangered species and other environmental credits to entities seeking compliance under these and other environmental regulations that require offsets to unavoidable impacts.

Ecosystem Investment Partners III, L.P. (“EIP III”) is targeting $200 million of capital commitments to invest in these LEO opportunities. On an unlevered basis, EIP III will target a gross IRR and multiple of 16% and 2.5x and a net IRR and multiple of 12% and 2.2x, respectively. Current income generated by the sale of mitigation credits and other ancillary land-based revenues is expected to represent at least 75% of the total return.

Financial description

The EIP team of ten professionals brings a breadth and depth of experience in all aspects of the investment strategy, including rural real estate investing, private equity fund management, conservation finance, ecosystem engineering and restoration and environmental policy. Additionally, EIP has assembled a world-class Advisory Board to enhance and further complement the skills of the core team.
Ecosystem Investment Partners II, L.P. (“EIP II”) closed in May 2012 with $180.7 million of capital commitments. EIP II has completed seven investments to date and, including two potential investments under contract and reserves for existing investments, is essentially fully committed. With an aggregate weighted average holding period of only 1.8 years, EIP II has begun making distributions, returning $6.6 million to limited partners through December 31, 2014 and a total of $13.2 million through April 2014.
In 2007 and 2008, EIP invested in three properties, collectively referred to herein as “EIP I,” totaling $27 million of contributed capital. These investments were capitalized on a deal-by-deal basis by certain EIP professionals, a timber investment organization, a private capital fund-of-funds manager, foundations and high net worth individuals.

8 years

of track record


the year funded

200,000,000 USD


Asset manager

SDG goals

SDG targets

Implement the un framework convention on climate change

Increase financial resources to conserve and sustainably use ecosystem and biodiversity

Sustainable food production and resilient agricultural practices

Improve water quality, wastewater treatment and safe reuse

Key performance indicators

Fund overview

Asset manager: Ecosystem Investment Partners

Product track record: Fund has 8 years of track record

Target IRR: 12%

Committed Capital: 81,400,000 USD (US Dollar)

Target return category: Risk-adjusted market-rate of return

Fund domicile:

Product status:


Inception year: 2015

Vintage year: 2015

Target region: , , ,

Target close date: 01/06/2015

Product term: Twelve years from the Final Closing Date

Assets under management: 200,000,000 USD (US Dollar)

Investment size: Min: 10,000,000; Max: 40,000,000; Avg: 25,000,000

Co-investment policy: ,

Currency of investments:

Currency for fund / product figures:

Fund investments to date: 0

Fund investments to date exited or repaid: 0

Management fee: 2%

Carried interest: 20%

Hurdle rate: 8%%

GIIN Investors' Council Investment: No

Limited Partners / Investors: Please contact EIP directly to discuss

Limited Partner / Investor Type: Endowments/Foundations, Family Office, Pension Funds, Other Institutional Investors




Phone number: 443-921-9441

If you wish to have your details removed from this database please email

Fred Danforth

Managing Partner

Nicholas Dilks

Managing Partner

Nick Dilks

Managing Partner

Impact Performance


Impact thesis

EIP’s investment strategy is to generate market-rate, risk-adjusted returns while also providing a positive and enduring impact on land conservation and restoration efforts in the U.S. The partners of EIP share a common philosophy that unlocking return on investment from conservation and restoration action on private property is necessary to achieve landscape scale environmental protection of ecosystem restoration.
Ecosystem services are defined as the goods and services that the natural environment provides to the human population, including clean water, clean air, biodiversity and a stable climate. An investment in the Fund ensures that “No Net Loss” of ecosystem services is achieved through the highest quality ecological restoration of critical conservation properties, thus creating a long-lasting and positive impact to the environment.

Impact Management


Request information about this fund