Private equity's expanding role in the water sector: key players, investments and strategic exits
As institutional capital continues to flow into water-related industries, private equity firms (PE) are playing a pivotal role in consolidating assets, scaling sustainable solutions, and modernizing critical infrastructure. In this analysis, Saurabh Singh, VP of Advisory Services at BlueTech Research, provides exclusive insights into the latest market trends, notable transactions, and investment strategies that are shaping the future of water. By examining both active portfolios and high-profile exits, the key financial sponsors leading the industry and the evolving dynamics of PE in water management are identified.
KKR
Infrastructure leadership and strategic exits
Current investments: Northumbrian Water (2022), Flow Control Group (2021), Axius Water (2019), Environmental Dynamics International (2020)
Successful exits: South Staffordshire Water (2018), CITIC United Envirotech (2016), Ecorbit (2024)
KKR remains a dominant force in water infrastructure investment, leveraging strategic acquisitions, divestments, and large-scale capital commitments. Its 2024 sale of Ecorbit to the IMM consortium ($2.07B) exemplifies its ability to navigate complex infrastructure deals, following its high-profile exits from South Staffordshire Plc (2018) and CITIC United Envirotech (2016, $281M).
KKR is a dominant force in water infrastructure investment, leveraging strategic acquisitions, divestments, and large-scale capital commitments
Beyond direct acquisitions, KKR actively builds water-focused platforms, such as Axius Water (2019, with XPV Water Partners), a leader in nutrient management solutions for wastewater treatment. The firm is also exploring a £4B investment in Thames Water, reinforcing its role in stabilizing critical water assets.
On a broader scale, KKR’s infrastructure expansion is accelerating, with a $6.4B Asia Pacific infrastructure fund and a global fund targeting $20B, reflecting strong investor confidence in its ability to drive long-term returns in water and utilities.
Bain Capital
Scaling water technology and environmental services
Current investments: Harrington (2023), AqueoUS Vets (2022), Eleda Group (2023), Arxada (2021), Italmatch Chemicals (2018)
Successful exits: Trinseo (2016)
Bain Capital is actively consolidating water technology and service providers, leveraging impact investing to drive sustainable water management solutions. Following its 2016 exit from Trinseo, Bain has strengthened its water infrastructure and treatment portfolio, focusing on contaminant removal, pipeline maintenance, and efficiency optimization.
The firm’s AqueoUS Vets acquisition (2022) underscores its commitment to PFAS contamination solutions, expanding its nationwide services for municipal and industrial clients. Meanwhile, Harrington Process Solutions (2023) has accelerated growth through the acquisition of PumpMan, enhancing wastewater maintenance capabilities.
Bain Capital’s Double Impact Fund, launched in 2016, reinforces its dual commitment to financial growth and sustainability, targeting businesses that align operational efficiency with environmental benefits. This integrated investment strategy positions Bain as a key player in modernizing water treatment technologies and service networks.
Blackstone
Expanding water technology and environmental solutions
Current investments: Geosyntec (2022), Desotec (2021), Legence (2020)
Successful exits: De Nora (2020), Nalco (2011)
Blackstone has built a strong portfolio in water treatment and environmental solutions, focusing on sustainable technologies and industrial remediation. Its 2020 exit from De Nora marked a milestone in its strategy to support innovation in water treatment, while its acquisition of Desotec (2021) reinforced its presence in mobile filtration and carbon reactivation services.
The firm’s investment in Geosyntec (2022) expanded its reach in environmental engineering and water contamination management, strengthening its role in climate resilience and pollution control. Blackstone continues to prioritize sustainability-driven water investments, ensuring its portfolio aligns with global trends in decarbonization and resource efficiency.
Ember Infrastructure
Sustainability-driven water investments
Current investments: H2O Innovation (2023), OnSite Performance (2023), Ground/Water Treatment & Technology (2023), Low Impact Development Technologies (2022)
Successful exits: None reported
Ember Infrastructure is an emerging player in sustainable water solutions, focusing on decentralized infrastructure and efficiency-driven technologies. The firm’s $395 million acquisition of H2O Innovation (2023) reinforces its commitment to water reuse and treatment technologies.
With its $500 million second green fund, Ember is expanding investments in water and wastewater efficiency, targeting $50M-$150M per company. This strategy positions Ember as a long-term investor in sustainable infrastructure, supporting climate resilience and decentralized water management.
Morgan Stanley Infrastructure Partners
Utility-driven long-term investments
Current investments: Apex Companies (2023), Alliance Technical (2021), Seven Seas Water (2020)
Successful exits: None reported
Morgan Stanley Infrastructure Partners (MSIP) focuses on long-term infrastructure investments, prioritizing water utilities and engineering solutions over quick turn exits. Its 2020 acquisition of Seven Seas Water expanded its Water-as-a-Service (WaaS) model, which enables clients in the Caribbean and Peru to access desalination and treatment services without large capital outlays.
MSIP targets stable, long-lifecycle assets in OECD countries, taking controlling stakes to optimize operations and drive sustainability. Its investments align with water conservation and stewardship, reinforcing its position as a key player in regulated water markets.
H.I.G. Capital
Water sector consolidation through acquisitions
Current investments: United Flow Technologies (2021), Standard Hidraulica (2021)
Successful exits: USALCO (2024)
H.I.G. Capital has aggressively expanded its water treatment and distribution portfolio through United Flow Technologies (UFT), executing multiple acquisitions since 2021. Key additions include Shape, Inc., Engineered Equipment Solutions, and Southwest Valve & Equipment, strengthening UFT’s market position in municipal and industrial water systems.
Its 2024 sale of USALCO, a leading chemical solutions provider, underscores H.I.G.’s ability to consolidate assets and execute high-value exits in the water sector.
Littlejohn & Co.
Expanding industrial water services
Current investments: Ardurra Group (2023)
Successful exits: Dana Kepner (2024), HydroChemPSC (2021)
Littlejohn & Co. has solidified its position in industrial water services through a series of strategic mergers and acquisitions. The firm scaled HydroChemPSC before selling it to Clean Harbors for $1.25B (2021), and later exited Dana Kepner (2024) after boosting its market reach.
During its ownership, HydroChemPSC underwent a major transformation, expanding its engineered services division and integrating key acquisitions, reinforcing Littlejohn’s expertise in value creation within the water sector.
Ridgewood Infrastructure
Investing in water resource management
Current investments: Waste Resources Management (2024), Prospect Lake Clean Water Center (2023), Undine (2019)
Successful exits: Vista Ridge (2024)
Ridgewood Infrastructure has established itself as a long-term investor in water resource management, focusing on large-scale water projects and sustainable infrastructure. Its 2024 exit from Vista Ridge, a major Texas water supply project, highlights its ability to develop and monetize critical assets.
In January 2025, Ridgewood closed its Water & Strategic Infrastructure Fund II at $1.2B, surpassing its $1B target, demonstrating strong investor confidence in its commitment to water and wastewater investments.
Data source: This analysis is based on insights from Saurabh Singh, VP of Advisory Services at BlueTech Research, a leading expert in water-focused private equity investments and strategic due diligence.