Kyle Bass, the founder and CIO of Hayman Capital Management has helped set up a US private equity firm focused on environmental sustainability and conservation.
The new company, Conservation Equity Management, has been launched by CEO Bass and conservationist and land management expert Terry Anderson as principal.
Conservation Equity intends to invest in large parcels of undeveloped land in Texas and surrounding states with a plan to “raise the value of ecosystems, mitigate environmental impacts, create biodiversity, and promote permanent conservation”.
For its first two transactions, Conservation Equity has acquired the 479-acre Bahia Grande Conservation Parcel in Cameron County and the 3,501-acre Cherokee Ridge River Farm property.
“This is the right moment for Conservation Equity. 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,” Bass said.
According to Bass, investors are increasingly demanding larger percentages of their investment portfolios be invested into vehicles that offer a positive impact on the environment without sacrificing returns.
“Conservation Equity seeks to capitalise 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 said.
Anderson said, “There is a substantial opportunity to acquire larger timberland and rangeland parcels as ESG solutions to carbon capture, utilization or storage, biodiversity offsets, and as hedges to inflation risk.
“As such, I am thrilled to combine my environmental conservation and mitigation experience and Kyle’s proven investment track record to launch a unique investment firm that we believe is well-positioned for long-term success.”
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