Water scarcity is emerging as a major climate challenge for institutional investors. While most attention is on the coronavirus impact, this stands to be a big longer-term concern.
SAM, an investment boutique focused exclusively on sustainability investing, expects the water industry to continue to grow faster than global GDP, especially in Asia.
The Clean Water Asia long-only fund will complement a long/short water fund and will be handled by the CRA Management unit of CLSA Capital Partners.
AmKonzen will manage a $320 million fund that will invest in water projects mainly in China and Southeast Asia.
With no alternative to water, its supply is one of the great challenges of the 21st century and therein lies the potential for investors to profit.
CLSA's mezzanine fund finances $60 million transaction as 136 cities in China face severe water shortages.