A new $100 million fund targeting climate resilience and sustainable water infrastructure has been launched, focusing on emerging markets vulnerable to water stress. The Water & Climate Resilience Fund, managed by a U.S.-based asset firm WaterEquity specialising in water and sanitation, aims to attract private investment to finance water infrastructure projects and growth companies across countries including Brazil, India, Indonesia, Kenya, Mexico, Peru, the Philippines, and South Africa.

The fund’s Chief Investment Officer, Marlene Hormes, said that the investment push addresses pressing climate-induced challenges in water-stressed regions. “Climate change is intensifying threats to health, productivity, and critical infrastructure, especially in regions already vulnerable to water stress,” Hormes stated, noting that the fund’s goals include improving water access in low-income communities and supporting private sector-led, climate-resilient water projects.

Focus on Infrastructure Projects and Growth Companies

According to statements from the fund’s managers, the investment initiative will prioritise two main areas: infrastructure projects and growth-stage companies with innovative water solutions.

For infrastructure, the focus will be on projects at the construction stage that support essential water functions such as sourcing, treatment, and distribution, as well as wastewater management.

The asset manager has specified that targeted projects could include municipal Public-Private Partnerships (PPPs), bulk water supply, wastewater treatment facilities, and industrial wastewater initiatives.

For growth companies, the fund is set to support scalable businesses providing proven water technologies and services, particularly those that offer sustainable solutions to underserved populations.

Hormes said that ticket sizes for investments would range from $2 million to $15 million, with an investment period of five to seven years aimed at supporting long-term project growth.

Increased Private Investment in Climate-Resilient Water Infrastructure

Industry observers note that private investment in water infrastructure is increasing as climate change strains public resources and disrupts water access in vulnerable regions.

The fund’s managers stated that their approach aligns with broader trends in private capital flows, as investors increasingly seek opportunities to support environmental, social, and governance (ESG) objectives in sectors like water.

According to the International Water Management Institute, emerging markets in particular need robust financial backing to adapt to water shortages and improve resilience to climate impacts. The fund’s managers hope that the capital will bolster water security in areas where governments often lack resources to address water scarcity alone.

Investment Goals and Support for Emerging Companies

Fund managers highlighted that investment criteria include both minority equity and mezzanine investments, with a goal of supporting sustainable growth rather than acquiring full ownership.

Hormes emphasised that for projects and companies that are not yet “investment-ready,” the fund offers preparation services, indicating a commitment to helping initiatives mature and eventually qualify for full funding.

“By advancing climate-resilient water infrastructure in low-income communities across emerging markets, we aim to create sustainable water access, improve community resilience, and drive long-term positive change,” Hormes said.

In line with this model, the fund will look for projects and companies that exhibit strong potential for growth while addressing critical water needs in their respective regions. Fund representatives pointed out that this dual focus on infrastructure and growth-oriented water solutions positions the fund as a bridge between current water needs and scalable climate resilience.

Expanding Climate-Resilient Infrastructure Globally

According to World Bank estimates, infrastructure investments in emerging markets need upwards of $114 billion annually by 2030 to meet water and sanitation demands alone.

Fund representatives say the Water & Climate Resilience Fund is one piece of a larger movement aiming to fill the gap, supporting sustainable development and climate resilience in sectors traditionally underfunded in emerging economies.