Ecosystem Integrity Fund

The Ecosystem Integrity Fund (“EIF”) is a small sustainability-focused investment fund developed and managed by Aquillian Investments. The Fund seeks to invest in companies and projects that contribute substantively to reducing or ameliorating key threats to ecosystem integrity:

• Land fragmentation and conversion
• Depletion of productive capacity
• Contamination of land, air and water

Need for a Different Approach to Sustainability
Cleantech investors typically focus on a relatively narrow set of opportunities. Because most VC’s come from a background unrelated to sustainability, there is a tendency to treat these investments like other VC sectors such as semiconductors, internet software, or biotech. Inadequate attention is paid to the particularities of the space and interactions across segments. As a result, many investments are made that are unlikely to succeed, and significant areas of potential investment are ignored. Moreover, cleantech entrepreneurs are passionate about sustainability, and often do not fit well culturally with traditional VC investors – even those investors with a cleantech mandate. The solution is a systems-based, disciplined approach, delivered by an investment firm aligned with the sustainability orientation of clean technology entrepreneurs.

Benefits of Systems Thinking
Environmental problems are systemic. Using capital to pursue real solutions requires an appreciation for the complexity of natural systems, as well as a deep understanding of the practical obstacles to implementing change in particular segments.  Because fewer investors approach sustainability from a systems-based perspective, such an approach can produce a unique set of investment opportunities with less competition, while being complementary to other approaches.

Benefits of a Smaller Fund Size
There has been a trend in recent years towards big funds, which must make large investments in capital-intensive businesses. This leaves an opportunity for a smaller fund to make excellent investments in more capital-efficient and often over-looked businesses.  A small fund size encourages and enables increased investment discipline, transparency, and direct access to the investment team.

Aquillian’s Approach
Aquillian’s investment approach is distinguished by the following five elements:

• A systemic approach to sustainability, long-term commitment, and broad market exposure provide a different perspective
• A strong understanding of connections between segments of the sustainability investment space, diligent study of these segments, and an extensive network of relationships yield a unique opportunity set
• A truly innovative investment strategy, which is uniquely aligned with sustainability-focused entrepreneurs
• An investment approach and process that are rigorous and thoughtful
• Experience, temperament, and strong values that enable us to exercise good judgment

Focus of the Fund
The Ecosystem Integrity Fund is focused on identifying promising solutions to key threats to ecosystem integrity, from the perspective of both investment value and environmental benefit.  The best way to profit from these solutions varies in different circumstances: sometimes it is an investment in an innovative company that sells products or services, while in other cases the best vehicle is a project or superior project developer. 
For this reason, the Ecosystem Integrity Fund will comprise a combination of investments in private companies and land-based projects, in the following prospective mix: at least 60% companies / up to 40% projects. 
The fund will typically pursue investments in capital-efficient businesses which have not received sufficient investor attention, niche opportunities through which we can add significant value with limited capital, and opportunities to access or develop unique platforms.