For more than a decade, the largest long-term investors—national wealth funds, pension funds, and endowments have sought out ways to invest in solutions to water scarcity and in water resilience. The water technologies that provide transformational solutions have struggled to scale their installations beyond pilot systems. Artemis worked with a leading-edge project finance to develop finance vehicles that enable utilities and businesses to buy their technologies as services rather than as equipment.
Artemis conducted intensive primary research through its global network of water industry executives, utilities and policy leaders to identify the most promising proven water tech solutions and analyze where they could generate value with today’s water and energy costs. It worked closely with engineering firms and technology companies to identify parameters for relevant water technologies and projects. Through more than 200 interviews, we identified a group of 58 companies that had relevant completed solutions, and developed a pipeline of water project finance vehicles. These finance vehicles provide technology companies with a non-dilutive form of capital to deploy their solutions. Rather than selling shares of stock in their company, they can sell shares of projects where clients have made long-term commitments to pay for water-related services. Technology companies can aggregate a series of projects to provide a low-risk project-based finance opportunity of $20M – $30M.
Through these project finance vehicles, larger funds can invest in water efficiency and water resilience projects. They enable the financial leaders that see the long-term value of water resources to invest in solutions that can have impact today. Read more on pioneering deals.