RALEIGH, NC – New Forests Inc and Equator LLC, co-managers of the private equity vehicle The Eco Products Fund, LP (EPF), are pleased to announce EPF’s commitment to invest in a portfolio of new stream, wetlands and nutrient mitigation banks to be developed throughout the United States and managed by Restoration Systems, LLC. Stream and wetland mitigation credits generated by these banks will be used to fulfill permit obligations under federal and state environmental quality programs. The sale of these regulated credits will enable development and infrastructure improvements to comply with landmark environmental legislation such as the Clean Water Act. Restoration Systems and EPF also expect to generate nutrient credits that will help restore the health of the Chesapeake Bay, where a new market is emerging to mitigate high levels of pollution runoff.
“We are very happy to announce this partnership with Restoration Systems, a leading company in the growing mitigation banking industry,” said Radha Kuppalli, Director of New Forests Inc. “By bringing together the financial and marketing abilities of the teams of New Forests and Equator with the experience and broad-based knowledge of Restoration Systems, we are strengthening one of the foremost networks of mitigation banks in the Southeast. We look forward to continuing investment that catalyzes growth in mitigation banking and water quality markets.”
“Restoration Systems and EPF share a commitment to developing and managing quality environmental mitigation and restoration banks,” said George Howard, President of Restoration Systems. “This investment by EPF will help Restoration Systems achieve our objective of restoring thousands of acres of critical ecosystems for multiple mitigation markets in the best locations.” Restoration Systems used the investment banking services of New York based Coady Diemar Partners to assist in the transaction.
The partnership between EPF and Restoration Systems evidences the maturation of the mitigation banking industry in the Southeastern United States. Gerrity Lansing, President of Equator remarked, “Mitigation banking is a great example of how markets can work for the environment. This transaction will help clean up the Chesapeake Bay and restore American wetlands that provide valuable services to communities, from clean water to flood protection.”
About the Participants
The Eco Products Fund
The Eco Products Fund, LP (EPF) is a private equity fund jointly managed by New Forests Inc and Equator, LLC. EPF invests in a portfolio of ecosystem-based instruments associated with wetlands and endangered species conservation, forest and land-based carbon sequestration and water quality improvements in the United States and internationally.
Restoration Systems (www.restorationsystems.com), based in Raleigh, North Carolina, is a developer of wetland, stream and water quality mitigation banks. The company has restored and permanently protected more than 40 properties and planted more than 1 million trees in North Carolina, Georgia, Virginia, Tennessee, Maryland and Texas.
New Forests (www.newforests-us.com) is a funds management company specialized in sustainable timberland investments and associated eco products markets, such as carbon, biodiversity and water, for institutional and private equity clients. The company is headquartered in Sydney, Australia, with offices in Washington, DC, San Francisco and Kota Kinabalu (Malaysia).
Equator LLC (www.equatorllc.com), headquartered in New York, is a leading asset management firm focused on investments in forest carbon, sustainable timberland and ecosystem services instruments. Equator specializes in the generation and management of high quality carbon credits and environmental assets derived from reforestation, forest conservation, sustainable land management and other emission reduction projects.