Water Infrastructure

Signina Capital AG in Zürich is a Water Infrastructure Advisor focusing on four specific areas. Hydro-Power, Desalination, Sewerage-Systems and Impact Investing via Water Filtration. All four areas are covered in Anglo-Saxon law jurisdictions.

We focus on mid-sized deals with government involvement. Deals are brown-field or already producing and we usually advise on longer-term contracts with non-leveraged return profiles that deliver yearly cash returns.

History and Experience

Signina Capital AG has a long standing experience in the Global water sector. Our principals teams executed their first investment in the water space in 1999.  While first the emphasis was on utility based investments, water technology became a significant part of the water advisory business after 2001. Due to lack of reforms in the water sector and the limited availability of deals,  Signina Capital AG views were mainly expressed via equities. While this has changed from 2004 onwards, mezzanine and project finance deals in developed countries became more and more important. Starting in 2004, we also advise on pre-IPO deals in Asia, privatization deals in the UK and a combination of infrastructure and utility corporate finance deals. From 2010 onwards Signina Capital AG has seen infrastructure as the best opportunity in the water sector. During those years we have also maintained an asset management licence, which we have withdrawn in early 2015 in order to fully concentrate on our Advisory. Signina has advised and invested approximately USD 1bn in the water space since 2004.

Advisory Strategy

Signina Capital AG's focus is on cash yields in the range of Libor +500bps, usually un-leveraged and after fees. Water infrastructure is defined as Hydro-power, Water Filtration, Desalination, Water Sewerage Systems and utility infrastructure that comes with it. Our geographic focus is in the U.S. and Canada. Counterparties are in general state governments, municipalities, and PPP-related companies. We deploy local specaialists that cover all aspects of the projects or assets. Our investments do not include large constuction or greenfield projects.

 

Key Advisory Criteria:

  • Stable partners – preferred governmental or PPP related companies
  • Stable financial ratios of target projects
  • Politically and regulatory secure situation in the projects area
  • Patent protected or field-tested technologies
  • Foreseeable or already financed Capex
  • Co-operation with partners within Signina Capital's broader network

Advisory Process

Besides third parties, we also source and originate our own deals through our long-established network within the water community. We then conduct rigorous due diligence on the Project and the main risk aspects.