Global private equity firm Carlyle Group is exploring a potential investment in Thames Water, the UK’s largest water and wastewater company, which is struggling under the burden of debt pile of more than $15bn, according to a report by Sky News.
The news comes as Ofwat, the regulatory authority for water services in England and Wales, is set to appoint an independent monitor to oversee Thames Water as early as next week.
The report cites unnamed sources familiar with the matter as confirming that Washington DC-based Carlyle, which manages approximately $435bn in assets, is in the very early stages of assessing whether an investment in Thames Water Utilities Ltd is viable. While Carlyle has been approached as a potential investor, Sky News’ sources say it’s still “too early” to determine if the firm will participate in a rescue deal, possibly through one or more of its funds.
Thames Water is currently grappling with severe financial challenges, and its liquidity is expected to run out much earlier than anticipated. For the financial year ending 31 March, the company paid £195.8m in dividends, a significant increase from the £45.2m it distributed in the previous year.
