Resonance, a real assets investment management firm affiliated with Fidante Partners, has announced the third close of Resonance Industrial Water Infrastructure Limited. Commitments of US$300 million from six institutional investors from the UK, US and Nordics.

The fund provides equity capital to finance the design and build of specialised industrial water treatment plants co-located with industrial users. Its industrial partners operate water treatment plants under long term contracts using the industry-standard build, operate and transfer (BOT) framework. 

Resonance expects to further deploy the fund’s capital by building a diversified portfolio of 10 to 15 water assets, typically US$10-50 million in size, in Europe, south east Asia, China, Australia and New Zealand. 

These investments will contribute to delivering greater sustainability in local water resources by reducing industrial pollution of water courses, increasing the supply of fresh water to industry.

Nick Wood, CEO and founder of Resonance, commented:

“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 increasingly concerned that they cannot obtain enough water to operate their facilities reliably.  Firms continue to invest in new facilities to meet these challenges.”

Phil Peters, managing director at Fidante Partners Europe, said:

“We have had a lot of interest from institutional investors in this opportunity. Pension funds, endowments, and funds with an ESG policy are looking for strong investment ideas, and this appeals because of the water industry’s investment characteristics and growth potential. Real assets continue to be an area of growth for us.”