WaterEquity’s next social impact investment fund will raise and deploy $50 million to enterprises serving the water and sanitation needs of the poor. Most notably, it will help fund small, affordable loans to these families, enabling them to gain access to safe water and sanitation. The ingenuity of this approach is its ability to transform lives by empowering people to participate as customers.
This impact-first fund aims to ensure that at least 4.6 million people gain access to improved water and sanitation, while generating a positive financial return for investors.
Additionally, the fund will:
Connect social impact investors in the U.S. and Europe with enterprises serving water and sanitation needs.
Enhance the pool of affordable investment capital available for these enterprises to help them scale their efforts.
Help these enterprises move along the capital spectrum to reduce their dependency on philanthropic capital.
Download our ebook to learn more about the innovative market-based solution that is helping millions of people in crisis access clean water and sanitation.
WaterCredit Investment Fund 3 will raise capital from accredited investors in the U.S. and Europe. The capital structure is composed of three investment classes structured as membership interests and one or more loan facilities, each of which has a distinct risk/return profile. In addition, a portfolio guarantee will cover first losses of principal and returns up to US$5 million.
The Fund will be managed by a dedicated portfolio investment team with both in-country and U.S.-based staff. This team will draw upon the expertise earned over nearly 15 years of advancing the WaterCredit initiative, as well as the experience of implementing WaterCredit Investment Fund 1.
The Fund aims to mitigate risk and maximize impact by investing in Water.org's proven WaterCredit partner organizations spread over multiple geographies, business models, and market segments. Candidate geographies include India, Indonesia, Cambodia, and the Philippines. Investments will skew toward India, which provides the deepest WaterCredit experience base.
WaterEquity will report on key financial and social performance metrics associated with its investments. This will include social impact measures recommended by IRIS, the catalog of generally accepted performance metrics managed by the Global Impact Investing Network (GIIN). IRIS is utilized by leading impact investors as the third-party standard to measure the social, environmental, and financial success of social impact investments.
Today, accredited investors like you are investing in WaterEquity. Soon, everyone, including small investors, will be able to make a loan, empowering everyone to help end the global water crisis in our lifetime.