Ogier has advised Resonance Asset Management (Resonance) on the establishment of Resonance Industrial Water Infrastructure Limited (the Fund), a Guernsey registered collective investment scheme focusing on financing industrial water infrastructure projects.
This is the first institutional fund exclusively focused on financing industrial water infrastructure projects in Europe, South East Asia, China, Australia and New Zealand, and commitments of US$300 million from institutional investors demonstrate investor appetite to participate in the US$53 billion global industrial water treatment industry.
Resonance, a signatory to the UN Principles for Responsible Investment, will manage the Fund in accordance with Resonance's responsible investment policy.
The Fund provides equity capital to finance the design and build of specialised industrial water treatment plants co-located with industrial users. Its industrial partners operate water treatment plants under long term contracts using the industry-standard build, operate and transfer framework. Industrial users benefit from outsourcing water treatment because they reduce capital expenditure requirements, transfer operating risk and can rely on the extensive and up-to-date knowledge of plant operators to optimize their water treatment processes and water cycle management.
These investments will contribute to delivering greater sustainability in local water resources by reducing industrial pollution of water courses, increasing the supply of fresh water to industry, and recovering valuable by products, such as salts, metals and energy.
Partner Bryon Rees led the Ogier team advising on Guernsey law matters and worked with lead counsel, Simmons & Simmons. TMF Group Fund Services has been appointed as the administrator of the Fund.
Resonance is an alternative asset management firm focused on originating, distributing and managing real asset investment funds for institutional investors. It has a focus on assets in growing and changing industries with compelling long-term investment themes, with areas of focus including alternative and conventional energy, water and waste treatment, environmental and agricultural assets.