Kansas City, Mo. – 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," said 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 have 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.
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 toward 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.