Kyle Bass, founder and CIO of Hayman Capital Management, has joined forces with renowned conservationist Terry Anderson to found Conservation Equity Management, a private equity firm focused on environmental sustainability and conservation.
The pair and 13 team members and strategic partners throughout the U.S. will invest in conservation mitigation, forestlands, rangelands, and alternative energy infrastructure strategies. Specifically, they have bought large parcels of undeveloped land in Texas and surrounding states where they say there is a significant opportunity to “raise the value of ecosystems, mitigate environmental impacts, create biodiversity and promote permanent conservation.”
“This is the right moment for Conservation Equity,” said Bass in a statement. “As more companies and people move to Texas and other pro-business, low-tax states, there will be devastating environmental consequences, forcing firms to consider their physical environmental impacts, carbon footprints, and mitigation options. As a result, conservation mitigation will be in high demand for decades to come.”
The Texas-based firm will target properties primed for conservation and will selectively pursue the creation and sale of environmental credits to mitigate wetland, stream, or endangered species habitat destruction. The strategy will also offer incremental income for sustainable purposes such as renewable energy development, sustainable forest management, regenerative cattle grazing and carbon sequestration.
“Conservation Equity seeks to capitalize on meaningful trends in geography, migration, central bank balance sheet expansion, and rural land as an asset class in order to offer investors both purpose and profits,” Bass added.