Partners Group, a global private markets firm, has acquired Resilient Infrastructure Group (Resilient), a water infrastructure platform focused on acquiring, developing, financing and operating distributed water-related facilities in the US and Canada.
The acquisition is a lead direct investment for Partners Group, acting on behalf of its clients. Financial terms of the transaction were not disclosed.
Resilient is headquartered in Portland, Oregon, and provides distributed water and wastewater solutions to industrial, technology, institutional and municipal clients that solve their site-specific treatment needs. Partners Group has identified significant potential to actively transform and grow Resilient into a well-diversified multi-industry water platform operating in the multibillion-dollar distributed water and wastewater sectors, including wastewater treatment and reuse infrastructure, wastewater-to-renewable natural gas facilities and potable water infrastructure. Resilient targets assets with highly contracted stable cash flows and operates in attractive sectors benefiting from strong market tailwinds due to transformative structural trends. In addition, Resilient is anticipated to have broad positive stakeholder impact by providing essential water and wastewater services during a period when population growth and rising surface temperatures due to climate change continue to put pressure on water resources across the US.
Concurrent with Partners Group’s acquisition of Resilient, the Platform closed an investment in a wastewater-to-renewable natural gas project at Threemile Canyon Farms in Oregon. Partners Group will work closely with Resilient’s experienced management team on key transformative initiatives, including expanding the Platform through ground-up development projects and new acquisitions, implementing best-in-class practices to increase operating efficiencies at acquired assets, and securing strategic partnerships to provide tailored solutions for municipal, institutional, commercial, and industrial customers.
Ed Diffendal, Managing Director, Private Infrastructure Americas, Partners Group, says: “We have been actively researching the water and wastewater infrastructure sector for a number of years as part of our thematic approach to investing. It is estimated that the industry will require USD 1 trillion in investment over the next 25 years, and USD40 billion annually. The critical need for the development of more water infrastructure makes Resilient an exciting transformational investment opportunity, and we look forward to working with the Resilient management team to build the leading platform of water-related assets in the US and Canada that will yield strong, sustainable returns for our investors. Partners Group’s entrepreneurial governance approach and extensive experience in executing platform expansions makes it ideally suited to support the Platform’s growing portfolio.”
Ben Vitale, Co-Founder, Chief Executive Officer, Resilient, says: “Companies, institutions and communities recognise that upgraded water-related infrastructure is needed at every level to maintain and expand delivery of services. This is driving the trend towards the development of decentralised water assets, which is Resilient’s core focus. We believe that water efficiency, recovery, and reuse are the new energy efficiency. We look forward to working with Partners Group, leveraging its significant market reach, proven ability to work with management teams to build and operate a platform of assets, and the team’s operational expertise, to achieve our next phase of growth.”
Paul Luce, Member of Management, Private Infrastructure Americas, Partners Group, adds: “Resilient is an exciting opportunity to partner with a seasoned management team to develop essential infrastructure in a sector benefiting from accelerating tailwinds, as identified by our Thematic Sourcing strategy. These tailwinds include the need for privately-owned and operated distributed water assets given the deteriorating state of municipal water assets and the increasing scarcity of water as a resource due to climate change. Certain assets identified for development will also provide a renewable energy source for local communities, assisting the transition to a low carbon economy and further enhancing the Platform’s positive stakeholder impact.”