Three Danish pension funds have invested a collective USD 160m into a US fund that invests in environmental restoration and the preservation of nature and biodiversity.

Sampension, AP Pension and Lærernes Pension have jointly pledged to invest millions into Ecosystem Investment Partners V. The three companies will contribute USD 52m, 60m and 50m to the fund, accounting for almost a quarter of the fund's expected size of approximately USD 650m.

Ecosystem Investment Partners (EIP) invests in environmental restoration in the United States with a focus on wetlands, streams and endangered species. The fund's business model stems from US environmental legislation, which since the 1970s has required environmental mitigation in the construction of new infrastructure, industry or real estate.

Commenting, Sampension head of alternative investments, Majken Hauge Johansen, said: “We have significant and good experience of investing in nature restoration together with EIP. And the investment in the new fund is a great extension of our other investments in EIP's funds, where we have now invested a total of DKK 1.3bn since 2012.

“We are pleased with these investments, which form a central part of our portfolio. The investments provide both reasonable returns for our customers and at the same time work for the benefit of the environment and biodiversity, which we naturally emphasize as a responsible investor.”

For AP Pension, this is its first investment in EIP's funds.

Commenting, AP Pension head of alternative investments, Helle Ærendahl Heldbo, said: "At AP Pension, we see the investment as an exciting opportunity to create good returns for our customers while actively contributing to the restoration of nature and increased biodiversity. We would really like to make more of this type of investment - and preferably in Europe or Denmark - so it is our hope that a framework can be created that makes nature and biodiversity an investment case.”

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