WaterEquity Announces New Impact Fund Focused on Climate-Resilient Water and Sanitation Infrastructure

WaterEquity, an asset manager dedicated to financing water and sanitation solutions in emerging and frontier markets, 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.