WaterEquity Announces $100M+ Raised for New Impact Fund
Published on by Water Network Research, Official research team of The Water Network in Business
WaterEquity Announces $100M+ Raised for New Impact Fund Focused on Climate-Resilient Water and Sanitation Infrastructure
Investors include Microsoft, through their Climate Innovation Fund, as anchor investor, Starbucks, and Xylem as strategic investors, alongside Ecolab, Reckitt, Gap Inc., and others, with the goal of reaching 15 million people globally with access to safe water and sanitation
Kansas City, MO, Sept. 10, 2024 – WaterEquity, an asset manager dedicated to financing water and sanitation solutions in emerging and frontier markets, today announced it has achieved a milestone in raising more than $100 million for its Water & Climate Resilience Fund (the “Fund”). This new private investment fund brings together a group of corporate, foundation, and institutional investors committed to driving collective action across water stewardship, sustainable development, and climate resilience. Investors include Microsoft, through their Climate Innovation Fund, as anchor investor, Starbucks and Xylem as strategic investors, alongside Ecolab, Reckitt, Gap Inc., and others.
"Water is at the core of every major global challenge we face today. Addressing the global water and sanitation crisis is not just about providing access to safe water; it’s about building resilience to climate change, advancing global gender equality, and transforming health and education outcomes for millions of people. Investing in water infrastructure is one of the most powerful ways we can create a brighter, more sustainable future for everyone." — Matt Damon, Co-founder of WaterEquity and Water.org
According to the World Bank, investments in this sector must at least quadruple from current levels to fully achieve Sustainable Development Goal 6 — clean water and sanitation for all. There is an urgent need to invest in water infrastructure around the world to reach billions of people who are increasingly vulnerable to the impacts of climate change. Water supply and sanitation infrastructure has been historically underfunded. Climate change continues to exacerbate the water crisis, particularly for vulnerable populations, as increased storms, floods, and droughts damage infrastructure and elevate water stress.
This investment milestone marks a pivotal moment of collective action among diverse investors to use investment as a tool to advance a water-positive future. The global water crisis poses significant risks to global supply chains, profitability, and community well-being, as it is both an economic and humanitarian issue. These risks are amplified by the intersection of the water crisis and climate change.
"By bringing together a diverse group of committed water and climate partners, we are directly addressing the need for water and sanitation solutions in communities vulnerable to the impacts of climate change. Our hope is the Water & Climate Resilience Fund will become a testament to the powerful role that strategic collective investments can play in building resilience, protecting lives, and ensuring a sustainable future." — Paul O’Connell, President and Chief Executive Officer of WaterEquity
The Fund will invest equity and debt capital in projects and growth companies working across the water value chain, such as bulk water supply, water distribution, wastewater treatment, and water reuse. At its target fund size, the Fund aims to reach 15 million people with safe water or sanitation access across Africa, Asia, and Latin America. WaterEquity previously launched four impact funds addressing the need for household-level financing for water and sanitation. This new Fund intends to build on that foundation by financing the climate-resilient infrastructure necessary for households to connect to essential services. The infrastructure strategy adds a new dimension—building climate resilience for vulnerable populations. In reaching this fundraising milestone, the Fund has raised over half of its total target of $200 million—taking a momentous step towards addressing an urgent need for communities.
The Fund is part of a larger investment strategy that aims to invest in climate-resilient water and sanitation infrastructure alongside household solutions with the goal of bringing sustainable water and sanitation access to 100 million people.
The Fund’s strategy is tailored to making private investments in emerging and frontier markets' water and sanitation sectors, focusing on a portfolio of projects and growth companies. As an example, one of the Fund’s initial investments is expected to be in a growth company in India specializing in freshwater management. This company provides efficient and sustainable solutions through a patented rainwater harvesting system, addressing a niche market driven by water scarcity, floodwater mitigation, and sustainability needs in water-stressed communities in India. With 18 percent of the world’s population but only 4 percent of its water resources, India is among the most water-starved countries globally. The impact of this investment is intended to help mitigate water scarcity by making rainwater available for non-potable use and by recharging underground aquifers. These efforts address the urgent challenges of groundwater overexploitation and flood impacts, offering resilience benefits.
“Our investments in climate-resilient water infrastructure and innovative solutions are not just intended to meet for immediate needs but also to build long-term resilience for millions of people in low-income populations. This strategy has the power to transform communities, secure water resources, and create lasting impacts for generations. The Water & Climate Resilience Fund will exemplify how private investment can tackle the most urgent water and sanitation challenges in emerging markets." – Marlene Hormes, Chief Investment Officer, WaterEquity
WaterEquity and non-profit organization Water.org, both founded by Gary White and Matt Damon, operate with a unified vision of safe water and sanitation for all. Together, they harness the capital markets to help end the global water crisis. Water.org develops a pipeline of investable opportunities through capacity-building and project development support, while WaterEquity manages private investment funds that aim to generate water and sanitation impact while seeking a financial return for accredited investors. This relationship, which draws upon support from philanthropic donors and accredited investors, seeks to maximize both organizations’ impact, to reach more people in need, faster, with universal access to safe water and sanitation.
ENDS
About WaterEquity:
WaterEquity is an asset manager dedicated to mobilizing private investment into the water and sanitation sector in emerging and frontier markets. WaterEquity invests in financial institutions, enterprises, and infrastructure in emerging and frontier markets delivering safe water and sanitation solutions to vulnerable communities, while seeking financial returns for accredited investors. Since 2016, WaterEquity has raised more than $460 million in committed capital and improved access to safe water or sanitation for more than 6.2 million people.
Founded by award-winning entrepreneurs Gary White and Matt Damon of Water.org, and led by Paul O’Connell, the success of WaterEquity is built on decades of collective experience investing in water and sanitation in emerging markets.
Learn more at WaterEquity.com
DISCLAIMERS: There can be no guarantees of any level of financial returns. All investment has a risk of loss. Likewise, there can be no guarantees of the level of social or environmental impact. There is always the risk that impact investments will have a net negative impact, despite the Fund’s efforts to achieve net positive impact. Microsoft, Xylem, Ecolab, Gap Inc., and Reckitt are investors in the Fund, and therefore there may be a material conflict of interest associated with their testimonials. No compensation was given for testimonials.
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Addendum: Investor Quotes - Interviews available upon request
"With billions of people lacking access to clean water and sanitation, we need to see more investment in projects that protect vulnerable populations from the impacts of climate change. We're thrilled to welcome additional investors and expand WaterEquity’s Water & Climate Resilience Fund potential impact. Projects like this represent how we’re looking to invest in scaling up our water work through partnership with both non-profit and private-sector entities that are working to solve critical water challenges."
Morgan Collins, Director of Impact Investments at Microsoft
“Enabling water and sanitation access for more people in under-served communities is critical to building a water-secure world. We are excited to collaborate with WaterEquity to accelerate private-sector investment in innovative solutions to achieve this goal.”
Matthew Pine, Chief Executive Officer at Xylem
“As a global water leader managing more than 1 trillion gallons of water for customers across more than 40 industries, Ecolab is focused on building a positive future where water resources are abundant and sustainable. By investing in WaterEquity’s Water & Climate Resilience Fund, Ecolab is helping to provide millions of people with clean and safe water. The initiative underscores our belief that business success and sustainable development are intrinsically linked.”
Emilio Tenuta, Senior Vice President and Chief Sustainability Officer at Ecolab
“We are proud to support WaterEquity’s Water & Climate Resilience Fund, which will continue to accelerate access to clean water and sanitation, as well as the development of technology that reduces water consumption in manufacturing. At Gap Inc. we take great pride in our purpose to bridge gaps to create a better world and this investment will help protect natural resources and ensure healthy communities for generations to come.”
Richard Dickson, President & CEO, Gap Inc.
“Water is essential to health, life and our shared prosperity. Yet across the globe, millions of people live without access to adequate water, sanitation and hygiene (WASH), and climate change is posing further risks. As a global leader in health and hygiene, Reckitt works to help deliver a cleaner, healthier world, and our investment in WaterEquity’s Water & Climate Resilience Fund will help impact the lives of millions of people through our collective action.”
Kris Licht, CEO of Reckitt
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Taxonomy
- water funds