September 17, 2024

By Gerelyn Terzo, Global AgInvesting Media

Amid an urgency for water supply and sanitation infrastructure investment, Kansas City, Missouri-based asset manager WaterEquity has raised over $100 million for its Water & Climate Resilience Fund. WaterEquity, whose sole focus is to finance water and sanitation solutions in emerging and frontier markets, has attracted a high-profile roster of investors, including anchor investor Microsoft through its Climate Innovation Fund, among others. In addition to Microsoft, other participants in the round include Starbucks and Xylem as strategic investors, alongside Ecolab, Reckitt, Gap and others.

The global water crisis hits home for Gary White and Matt Damon (yes, that Matt Damon), co-founders of non-profit Water.org, the entity through which WaterEquity was formed. For Damon, though he has experienced life through the lens of the big screen, the philanthropist holds a global perspective after traveling at a young age where he witnessed firsthand the pervasive poverty that has gripped developing countries. “I quickly realized the world was much bigger than my hometown,” Damon said.

WaterEquity’s fund, which boasts a target size of $200 million, will direct both equity and debt capital into projects and growth companies operating across the water value chain. Financing will support climate-resilient infrastructure that is required for households to connect with essential health services. With its capital warchest, WaterEquity wants to reach 15 million people globally with access to safe water and sanitation amid a wider and loftier company goal to bring sustainable water and sanitation access to 100 million people.

As one of the most water-starved nations on the planet, India is home to nearly one-fifth of the global population but holds a mere 4 percent of its water resources. Therefore, it’s not surprising that India is the target of the fund’s maiden investment through a growth company that specializes in freshwater management. The business delivers sustainable solutions through its patented rainwater harvesting system to combat water scarcity and improve floodwater mitigation in water-stressed communities.

According to Water.org, 2.2 billion people around the world lack access to safe water. To achieve clean water and sanitation for everyone, investments into this market must quadruple, at a minimum, per the World Bank. The effects of climate change have only made matters worse, especially for vulnerable populations amid an increase in storms and floods that damage critical infrastructure and elevate water stress, resulting in a global water crisis that threatens to disable global supply chains, profitability and communities.

WaterEquity is doing its part to bridge the funding gap by uncovering investment opportunities that align with its mission to achieve risk-adjusted returns and a verifiable social impact. Since inception in 2017, WaterEquity has reached 6.2 million people with water and sanitation across over $460 million in committed capital with a view to reach the UN’s Sustainable Development Goal 6, which is to “ensure access to water and sanitation for all.”

Damon, WaterEquity co-founder and award-winning actor, stated, “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.”

WaterEquity President and Chief Executive Officer Paul O’Connell said, “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.”

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