IMPACTASSETS 50™
An Annual Showcase of Impact Investment Fund Managers
ImpactAssets 50
An Annual Showcase of Impact Investment Fund Managers
WaterEquity, Inc.
Water and Sanitation
Microfinance, low-income financial services & micro-insurance
Global HealthFirm Overview
WaterEquity is an asset manager exclusively focused on solving one of the most urgent issues of our time—the global water and sanitation crisis. We invest in financial institutions, enterprises, and infrastructure in emerging markets delivering access to safe water and sanitation to low-income communities, aligning investor values with risk-adjusted returns. Founded by award-winning entrepreneurs Gary White and Matt Damon of Water.org, the success of WaterEquity is built on decades of experience investing in water supply and sanitation (WSS) in emerging markets. Since 2016, we have launched four funds, raised more than $350 million in committed capital for Sustainable Development Goal 6, and reached more than 4.5 million people with access to safe water or sanitation, of which women comprise 95% of microloan end-clients.
Years of Operation: 5 – 9 years
% of Capital from Top 3 Investors: 25% – 49%
Lack of financing is the key barrier preventing individuals from securing safe water or sanitation, and the infrastructure necessary to deliver it. WaterEquity identifies investment opportunities in the water and sanitation sector aiming to accelerate universal access to safe water and sanitation for millions of women, children, and men.
Economists estimate a $1 trillion market opportunity for providing water and sanitation services to all people worldwide by 2030. Our goal has always been to build a sustainable, global capital market for safe WSS that will directly reach those in need. We focus on two areas: Household Solutions: Among low-income consumers, at least 600 million people could access WSS products, services, and upgrades if financing was available, equating to a $35 billion market demand. Climate-Resilient Infrastructure: While infrastructure investments have grown by 350% in the last decade, only 1.9% of private infrastructure financing went toward WSS infrastructure specifically. There is an urgent need to expand and rehabilitate these systems globally to reach billions of people who are increasingly vulnerable to the impacts of climate change. WaterEquity believes that investment capital can bridge the financing gap that separates 1 in 10 people from safe water, and 1 in 4 from sanitation.
WaterEquity emerged out of Water.org, a renowned NGO that built the case for WSS microfinance. Our genesis and deep experience in emerging markets and the WSS sector uniquely sets us apart from our peers. WaterEquity’s team is comprised of individuals with decades of banking and water/sanitation experience, and an unparalleled understanding of the barriers low-income consumers face. This unique combination enables us to identify investment opportunities with an attractive mix of financial returns and social impact. In 2022, WaterEquity and Water.org identified a goal of reaching 100 million people with access to water and sanitation. This initiative leverages Water.org’s network to source and originate investable opportunities for WSS household solutions and infrastructure. Water.org’s market building activities strengthen and expand our investment pipeline by bringing technical assistance and advocacy activities to nascent markets. This shared goal further cultivates the most promising opportunities for both impact and financial return.
Investment Example
Located in Nairobi, Kenya, Sidian Bank is a commercial bank with a dedicated water, sanitation, and hygiene initiative focused on empowering entrepreneurs to create wealth through provision of transformational financial solutions. WaterEquity disbursed a $5 million investment to Sidian Bank to finance loans to small-and-mid-sized enterprises delivering water and sanitation products and services. Sidian Bank, which has a strong track record and reach into underserved communities, has been working for several years to develop solutions for the water and sanitation challenges in Kenya. With only 62% of the population having access to safe drinking water in Kenya, WaterEquity’s investment, coupled with Sidian Bank’s local reach, will expand access in a country with enormous water needs. WaterEquity estimates that Sidian Bank will on-lend nearly 1,100 loans to local water and sanitation enterprises, resulting in more than 400,000 low-income consumers being reached with water supply and/or sanitation services.
Leadership and Team
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Paul O’Connell – President More Info
Paul O’Connell oversees and manages WaterEquity’s day-to-day activities. He brings over 25 years of experience in the research and practice of international finance and asset management to the organization. Prior to WaterEquity, he spent more than 20 years as President and Managing Partner of FDO Partners, LLC, a quantitative asset manager providing currency and equity advisory services to sovereign wealth funds, pension funds, and other institutional investors. His research interests include exchange rate behavior, international capital flows, and labor migration, and he has published extensively on these topics. |
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John Moyer – Chief Investment Officer More Info
John Moyer oversees WaterEquity’s investments including strategy, due diligence, structuring, and monitoring. He brings 15 years of experience in the financial services and water and sanitation sectors in emerging markets. Previously, John led Water.org’s market entry into Southeast Asia, where he launched operations in three new countries and led engagements with 20+ financial institutions and water utilities. Prior to Water.org, John worked for CHF International’s (now Global Communities) Office of Development Finance, managing a network of financial institutions in Sub-Saharan Africa and the Middle East. |
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Catherine Colyer – Chief Operating Officer More Info
Catherine Colyer provides operational and compliance oversight of WaterEquity’s business and its funds. She manages teams that are collectively responsible for maintaining WaterCredit’s status as a Registered Investment Adviser with the SEC, domestic and international regulatory compliance, fund management, operational strategy, corporate governance, HR, and systems. Catherine brings to her role 25 years of experience in regulatory compliance, financial services, fair lending, and balancing business and legal objectives. |
Financial Performance
Impact Performance
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Percentage of Total Assets Under
Management that are Impact Investments: |
100%
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WaterEquity invests in financial institutions or enterprises targeting the water and sanitation needs of low-income communities, particularly women. Understanding the client base served by our investees is a key part of the due diligence process. All loan agreements with investees contain covenants requiring that WaterEquity’s investment be used exclusively for water or sanitation, and that the investee meet certain impact targets related to number of people reached and client demographics.
During due diligence, WaterEquity’s Regional Investment Directors conduct comprehensive risk assessment on investee candidates using an ESG scorecard, identifying any key issues and the potential risk associated with those items, such as compliance with local environmental laws. Findings are presented to the Investment Committee with specific short-term and long-term recommendations to address risk and enhance practices. Any candidates that do not have acceptable ESG risk levels and are unwilling to agree to action plans to close ESG performance gaps will be disqualified from WaterEquity funding.
Impact Tracking and Monitoring
Learn More
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