Resonance announce commitments in excess of $100m from four anchor investors following the initial close of its second investment fund, Resonance Industrial Water Infrastructure Limited. Hard capped at $500m, the fund is focused on the creation of a portfolio of investments in water assets operated under long term outsourcing agreements with clients in the process industries. The fund is open for further subscriptions until July 2016.
Nick Wood describes the background to the investment opportunity: “Demand for outsourced water treatment services is being driven by increasing government regulation of discharged water and by water scarcity. In certain regions, industrial businesses are becoming concerned that they cannot obtain sufficient water to operate their facilities reliably. As a result, many continue to invest in new facilities to meet these challenges and as a result, the global industrial water treatment industry is currently worth US$53 billion per annum and is expected to grow at 8.6% per annum until 2020 according to a Global Water Intelligence Report of 2015”.
Resonance expect to build a diversified portfolio of 15 to 25 water assets, typically US$10-30m in size, across Europe, SE Asia, China and Australia. These investments will contribute to delivering greater sustainability in local water resources by reducing potentially polluting water discharges and recycling process water used in production.
As a signatory to the UN PRI, Resonance will manage the fund in accordance with its own Responsible Investment Policy.