Resonance Industrial Water Infrastructure Limited (the “Fund”) is an investment fund which aims to invest in small to medium sized greenfield and retro-fit industrial water treatment and resource recovery infrastructure assets, primarily focused in Europe, Australia, China and South East Asia.

The Fund acts as a financial partner offering equity investments on an industry standard Build-Own-Operate-Transfer (“BOT” or “BOOT”) model allowing industrial water operating partners to grow their core business, without the need to provide large amounts of capital to finance projects.

  • Unique source of funding for industrial water treatment assets from $10-$100M
  • Industrial water operating partners invest a minority stake alongside the Fund, making it an efficient use of their balance sheet
  • An experienced team at Resonance is available to assist partners with the negotiation of key contracts

This form of financing offers industrial water operating partners access to a unique source of capital, known as ‘non-recourse equity financing’, reducing the need for external debt whilst building a portfolio of long-term recurring revenue BOT contracts. This structure allows the industrial water operating partner to retain all of the engineering, procurement and construction (“EPC”) and operation and maintenance (“O&M”) profit, without having to provide 100% of the capital requirements. 

Resonance Asset Management Limited (“Resonance”) is the investment manager to the Fund.  The Resonance team is based in Europe and Asia and has extensive water industry knowledge to help support industrial water operating partners in developing their projects, including legal, financial and the structuring of the BOT contract.

Typically, the time taken from identifying the project to investment close should take around two months.

Overall, this financing approach allows industrial water operating partners to grow their core business with long-term operating contracts through a portfolio of BOT contracts.

 

The Fund model provides an equity investment that adds no burden to the balance sheet of the Industrial Water Operating Partner, yet provides an alternative channel for growth through Design Build (DB), Operation & Maintenance (O&M) and Design, Build Operate (DBO) revenues, to increase their return–on-capital for shareholders.

Growth in the Industrial Water BOT market is being driven by a number of factors, indicating that industrialists are increasingly recognising water as a key business risk.

  • The need to secure certainty of water supply
  • An ever tightening regulatory environment
  • The demand for water re-use driving the need for experts to operate increasingly complex water treatment systems
  • The ability to capture value through resource recovery such as energy, nutrients and valuable commodities

Outsourcing industrial water cycle management brings expertise and transparency to a key ‘non-core’, but business critical issue. 

Resonance Industrial Water Infrastructure Limited is a company incorporated in Guernsey with registration number 60361.  It is registered as a closed-ended investment scheme pursuant to the Protection of Investors (Bailiwick of Guernsey) Law, 1987, as amended and the Registered Collective Investment Scheme Rules. 

Resonance Asset Management Limited is authorised and regulated in the UK by the Financial Conduct Authority.  Click here for more information.