i2 Capital Company Profile

Background

i2 Capital is a conservation finance firm dedicated to developing and sponsoring innovative financial mechanisms aimed at expanding capital solutions for environmental conservation. The company's mission is to mobilize catalytic capital to advance market-based conservation solutions, envisioning an integrated system that aligns capital, community, and conservation to support both people and the planet.

Key Strategic Focus

i2 Capital specializes in structuring and sponsoring innovative finance mechanisms to expand capital solutions for conservation. The firm focuses on:

• Conservation Finance: Developing financial models that support environmental conservation efforts.

• Revolving Conservation Funds: Pioneering market-based approaches for sustained funding of conservation outcomes.

• Carbon Sequestration: Partnering with organizations like the Ecosystem Services Market Consortium to introduce conservation finance models that engage private landowners in expanding carbon sequestration and emission reduction practices on agricultural lands.

Financials and Funding

In September 2015, i2 Capital closed a Series A funding round, the terms of which were not disclosed. The capital was intended to grow the number of conservation banks in the U.S. and create new investment vehicles supporting the education and energy sectors.

Pipeline Development

i2 Capital has been involved in several key initiatives:

• Revolving Water Fund: In partnership with The Nature Conservancy, i2 Capital developed this fund to provide a self-sustaining pool of capital for watershed conservation. The fund engages municipalities and water utilities to purchase quantified pollutant reductions from agricultural restoration activities, aligning Environmental Protection Agency Clean Water Act compliance with science-based investments.

• Revolving Carbon Fund: Collaborating with the Ecosystem Services Market Consortium, i2 Capital introduced this fund to engage private landowners in expanding carbon sequestration and emission reduction practices on productive agricultural lands. The fund focuses on enhancing soil health and related carbon sequestration through changes in farming practices and long-term protection of forested ecosystems.

Technological Platform and Innovation

i2 Capital distinguishes itself through:

• Revolving Conservation Fund Model: A market-based approach for sustained funding of conservation outcomes, allowing for continuous reinvestment in conservation projects.

• Partnerships with Scientific Organizations: Collaborations with entities like The Nature Conservancy and the Ecosystem Services Market Consortium to develop and implement science-based conservation finance solutions.

Leadership Team

• Ashley Allen Jones: Founder and CEO.

• Rob Wallace: Operating Partner.

• Matt McKenna: Operating Partner.

• Bradley Booke: General Counsel.

Leadership Changes

In September 2015, i2 Capital announced that Jonathan Stearns and Rob Wallace would join as Partners, with Stearns serving as Chief Investment Officer and Wallace as Chief Government Affairs Officer. Stearns brought over 20 years of experience in private capital investments, including roles as Managing Director of Pine Bridge Investments and AIG’s Global Investment Group. Wallace previously served as Manager of U.S. Government Relations for GE Energy and as staff director for the U.S. Senate Committee on Energy and Natural Resources.

Competitor Profile

Market Insights and Dynamics

The conservation finance sector is evolving, with increasing interest in market-based solutions to environmental challenges. The development of financial mechanisms like revolving funds indicates a trend toward sustainable and scalable conservation funding.

Competitor Analysis

• I Squared Capital: An independent global infrastructure investment manager focusing on energy, utilities, digital infrastructure, transport, and social infrastructure. As of November 2024, the firm controls more than $40 billion in assets under management.

• I2 Capital Partners SGR S.p.A.: An Italian private equity firm focused on special situations, including underperforming companies and non-core divestitures. The firm has made investments in various sectors, including transportation and media.

Strategic Collaborations and Partnerships

i2 Capital has established significant partnerships to enhance its conservation finance initiatives:

• The Nature Conservancy: Collaborated to develop the Revolving Water Fund, aiming to provide a self-sustaining pool of capital for watershed conservation.

• Ecosystem Services Market Consortium: Partnered to introduce the Revolving Carbon Fund, engaging private landowners in carbon sequestration and emission reduction practices.

Operational Insights

i2 Capital's strategic focus on developing revolving conservation funds positions the firm uniquely in the conservation finance sector. By leveraging partnerships with scientific organizations and implementing market-based approaches, i2 Capital differentiates itself from traditional conservation funding models.

Strategic Opportunities and Future Directions

i2 Capital aims to expand its revolving fund models to address various environmental challenges, including water quality and carbon sequestration. The firm seeks to scale these initiatives by engaging additional municipalities, private landowners, and corporate partners, thereby broadening the impact of its conservation finance solutions.