WaterEquity, a US-based asset manager focused on social and environmental impact-based investments in the areas of water and sanitation, announced that it had raised over $100 million for its new Water & Climate Resilience Fund, which seeks to bring together investment partners to support efforts to enhance water stewardship, sustainable development, and climate resilience.

Among participants in the new Fund are Microsoft, through its Climate Innovation Fund as anchor investor, in addition to Starbucks and Xylem as strategic investors, alongside Ecolab, Reckitt, Gap Inc., and others. The figure represents more than half of the $200 million WaterEquity seeks to raise for the Fund.

An investment-based spinoff of global nonprofit organization Water.org, WaterEquity focuses on raising and deploying dedicated private investment capital for the water and sanitation sector. The new fund will be the firm’s fifth, with the first four responsible for over 100 cumulative investments in 20 countries, helping provide safe water and sanitation solutions.

According to the World Bank, investments in these solutions need to quadruple if the world is to achieve compliance with Goal 6 of the UN’s Sustainable Development Agenda, access to clean water and sanitation for all; a goal that is becoming even more challenging in the face of climate change.

According to the UN, water supply and sanitation infrastructure has been historically underfunded, and billions of people, especially vulnerable populations, are at risk from increased storms, floods, and droughts, all of which damage infrastructure and elevate water stress. In addition, the world’s water crisis poses significant risks to global supply chains, profitability, and community well-being, making it not only a humanitarian issue, but an economic one, as well. According to WaterEquity, the investment “marks a pivotal moment of collective action among diverse investors to use investment as a tool to advance a water-positive future.”

The fund will invest equity and debt capital in projects and growth companies working across the water value chain, in areas such as bulk water supply, water distribution, wastewater treatment, and water reuse, aiming to develop projects that will reach some 15 million people across Africa, Asia, and Latin America, helping provide them with safe water or sanitation access. The fund is part of a larger investment strategy that aims to invest in climate-resilient water and sanitation infrastructure alongside household solutions, with the goal of bringing sustainable water and sanitation access to 100 million people around the world via private investments in emerging and frontier markets’ water and sanitation sectors.

“By bringing together a diverse group of committed water and climate partners, we are directly addressing the need for water and sanitation solutions in communities vulnerable to the impacts of climate change. Our hope is the Water & Climate Resilience Fund will become a testament to the powerful role that strategic collective investments can play in building resilience, protecting lives, and ensuring a sustainable future,” said Paul O’Connell, President and Chief Executive Officer of WaterEquity.

Marlene Hormes, the firm’s Chief Investment Officer, said:

“Our investments in climate-resilient water infrastructure and innovative solutions are not just intended to meet immediate needs but also to build long-term resilience for millions of people in low-income populations. This strategy has the power to transform communities, secure water resources, and create lasting impacts for generations. The Water & Climate Resilience Fund will exemplify how private investment can tackle the most urgent water and sanitation challenges in emerging markets.”