Water funds may become an attractive investment target

Industrial demand for clean water continues to increase rapidly, yet investment in water protection funds is still not popular with institutional investors. In general, they tend to believe that water management projects do not achieve even the average of infrastructural investment projects, which is why a news item published in July in the Financial Times is particularly significant: Resonance Asset Management, a fund manager in London, has created a fund of 300 million dollars specializing in industrial water treatment, which has garnered interest from 6 important international institutional investors.

Water management investment funds are ways to provide an indispensable raw material for industrial companies in the long term: clean water of suitable quality. The portfolio of projects financed by the funds include wastewater treatment plants, innovative institutes working on technological development and other solutions for sustainable water management. The Financial Times quoted a piece of research from Oxford to the effect that the industrial water treatment industry is estimated to be worth around $53 billion globally.

The Resonance Water Fund, established in London in July 2015, largely finances small and medium green-field water treatment and sourcing projects in Europe, Australia and Southeast Asia. The investment fund focuses on serving water-intensive industries in the future such as energy production, oil and gas production, the chemical industry, the pharmaceutical industry, mining and the food industry. The operating model of the Resonance Water Fund allows the companies with specialist know-how to implement water-related projects without significant expenditure of their own capital. In addition to funding, they also provide legal, negotiating and financial consultancy to their partners.