WaterEquity, an asset management firm focused on financing water and sanitation initiatives in emerging and frontier markets, has announced a significant achievement in raising over $100 million for its Water & Climate Resilience Fund (the “Fund”).
This new private investment fund unites a coalition of corporate, foundation, and institutional investors dedicated to fostering collective efforts in water stewardship, sustainable development, and climate resilience. Notable investors include Microsoft, acting as the anchor investor through its Climate Innovation Fund, alongside strategic investors such as Starbucks and Xylem, as well as Ecolab, Reckitt, Gap Inc., and others.
“Water is fundamental to every major global challenge we face today. Tackling the global water and sanitation crisis goes beyond merely providing access to safe water; it entails building resilience against climate change, promoting global gender equality, and improving health and education outcomes for millions. Investing in water infrastructure is one of the most impactful ways to create a brighter, more sustainable future for all.” — Matt Damon, Co-founder of WaterEquity and Water.org
The World Bank states that investments in this sector need to at least quadruple from current levels to successfully achieve Sustainable Development Goal 6 — ensuring clean water and sanitation for everyone.
There is an urgent necessity to invest in global water infrastructure to support billions of individuals increasingly vulnerable to climate change effects. Historically, water supply and sanitation infrastructure has been underfunded, and climate change continues to worsen the water crisis, particularly for at-risk populations, as intensified storms, floods, and droughts damage infrastructure and increase water stress.
This investment milestone signifies a crucial moment of collective action among a diverse group of investors utilizing investment as a means to promote a water-positive future. The global water crisis presents significant risks to supply chains, profitability, and community well-being, as it represents both an economic and humanitarian challenge. These risks are heightened by the interplay between the water crisis and climate change.
“By uniting a diverse group of dedicated water and climate partners, we are directly responding to the demand for water and sanitation solutions in communities vulnerable to climate change impacts. We aspire for the Water & Climate Resilience Fund to exemplify the significant role that strategic collective investments can play in fostering resilience, safeguarding lives, and ensuring a sustainable future.” — Paul O’Connell, President and CEO of WaterEquity
The Fund will allocate equity and debt capital to projects and growth companies operating throughout the water value chain, including bulk water supply, distribution, wastewater treatment, and reuse. At its target size, the Fund aims to provide safe water or sanitation access to 15 million people across Africa, Asia, and Latin America.
WaterEquity has previously launched four impact funds addressing household-level financing needs for water and sanitation. This new Fund seeks to build upon that foundation by financing the climate-resilient infrastructure necessary for households to access essential services. This infrastructure strategy introduces a new element—enhancing climate resilience for vulnerable communities. Achieving this fundraising milestone, the Fund has raised over half of its total target of $200 million, taking a significant step toward meeting urgent community needs.
The Fund is part of a broader investment strategy aimed at financing climate-resilient water and sanitation infrastructure alongside household solutions to provide sustainable water and sanitation access for 100 million people.
The Fund’s strategy focuses on making private investments in the water and sanitation sectors of emerging and frontier markets, concentrating on a portfolio of projects and growth companies. For instance, one of the Fund’s initial investments is anticipated to be in a growth company in India specializing in freshwater management.
This company offers efficient and sustainable solutions through a patented rainwater harvesting system, targeting water scarcity, floodwater mitigation, and sustainability needs in water-stressed communities in India.
With 18 percent of the global population but only 4 percent of its water resources, India ranks among the most water-scarce countries. The goal of this investment is to alleviate water scarcity by making rainwater available for non-potable uses and recharging underground aquifers. These initiatives address the pressing challenges of groundwater overexploitation and flooding, providing resilience benefits.
“Our investments in climate-resilient water infrastructure and innovative solutions aim not only to meet immediate needs but also to foster long-term resilience for millions in low-income communities. This strategy possesses the potential to transform communities, safeguard water resources, and create lasting impacts for future generations. The Water & Climate Resilience Fund will demonstrate how private investment can effectively address the most urgent water and sanitation challenges in emerging markets.” — Marlene Hormes, Chief Investment Officer, WaterEquity
WaterEquity and the non-profit organization Water.org, both founded by Gary White and Matt Damon, share a unified vision of ensuring safe water and sanitation for all. Together, they leverage capital markets to help eliminate 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 aimed at generating water and sanitation impact while seeking financial returns for accredited investors. This partnership, which draws on support from philanthropic donors and accredited investors, aims to maximize the impact of both organizations, reaching more communities in need.
Source :WaterEquity
