Dallas-based Conservation Equity Management (CEM), a private equity firm that specializes in high-impact conservation investments, has acquired a diversified portfolio of mitigation banks, expanding into mitigation markets in Florida, Illinois, and Alabama.

Mitigation banks are wetlands, streams, or habitat conservation areas that have been established, restored, or preserved to offset development-caused environmental damage.

Co-founded in 2021 by hedge fund manager Kyle Bass and forestry and wildlife management expert Terry Anderson, CEM now holds 28 conservation assets spanning nine states across the American South, Midwest, and Mid-Atlantic. Bass is also co-CEO and founder of Rochefort Asset Management, a private credit firm focused on funding sectors critical to U.S. national and economic security. 

Portfolio includes both wetland and stream assets

CEM’s latest acquisition includes nine mitigation banks that offer both mature, revenue-generating assets and newly permitted projects with substantial credit inventories remaining, the firm said. The banks include both wetland and stream mitigation assets strategically positioned to serve some of the nation’s highest-demand environmental permitting markets. Together, the acquisitions cover 5,734 acres of wetland habitat and 58,907 linear feet of stream under active conservation management.

“The most compelling investment opportunities and the most pressing conservation needs often exist together,” Bass said in a statement. “This acquisition expands CEM’s reach across five new states and dozens of high-growth markets.”

Last month, CEM acquired the Straus Medina mitigation bank, a fully constructed stream bank in Bexar County, west of San Antonio. The bank includes around 36,950 linear feet of restored streams, protected in perpetuity by a conservation easement held by the Texas Land Conservancy.

Investing in ecosystem protection

The wetlands and stream corridors managed by CEM help preserve ecological function in regions facing sustained development pressure, the company said. The underlying mitigation acreage is permanently protected through perpetual conservation easements, and the portfolio’s diversity—covering multiple U.S. Army Corps of Engineers districts across nine states—establishes a robust platform for capturing demand from ongoing residential, commercial, energy, and infrastructure development across high-growth markets throughout the region, CEM said.

“Streams and wetlands are the connective tissue of healthy landscapes,” Anderson said in a statement. “When they’re degraded, everything suffers: water quality, wildlife, and communities. Every bank in this portfolio is a commitment to reversing that damage permanently, and that is something worth building.” 

Conservation Equity Management specializes in conservation investments that produce environmental, social, and financial returns. CEM said it structures and manages mitigation banking platforms across the United States, partnering with federal and state regulatory agencies, conservation organizations, and private landowners to protect and restore critical ecosystems.

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