About Water Capital Partners LLC
Water Capital Partners is a company formed to source and develop water sector infrastructure investments for affiliates of Kohlberg Kravis Roberts & Co. (KKR), one of the world’s oldest, largest and most respected private equity firms. KKR currently has over $75 billion in assets under management as of December 31, 2012. Founded in 2011 by veteran water industry executive Donald L. Correll and public-private-partnership expert John E. Joyner, Water Capital Partners brings together municipal governments, water asset owners, private operators, engineers and investors to create new models for improved asset management, new construction and system expansion.
Bayonne, New Jersey - A New Concession Model
Water Capital Partners brought together the substantial capabilities of United Water to provide operating services and KKR to provide cost efficient funding for a new public-private partnership model for the Bayonne Municipal Utilities Authority (BMUA). Under the terms of the $175 million transaction closed on December 21, 2012, the joint venture of KKR and United Water have entered into a 40 Concession Agreement with the BMUA to pay off all of the Authority’s existing debt which will significantly improve the City’s credit rating. Under the terms of the agreement, the Concessionaire, will collect fees directly from the customers, manage the asset and heavily invest in upgrading the historically capital starved system. Unlike traditional operating contracts, the KKR/United Water concession company will have comprehensive responsibility to provide customer service, operate the system and make substantial capital investments to assure optimized asset management.
Water Capital Partners will continue its investment interest in the Bayonne concession company and will represent KKR in an on-going oversight role.
Other Water Investments
Water Capital Partners continues to look for water investment opportunities where creative public-private partnerships can provide structures to leverage private investment capital, new technology, optimized asset management and premier operating services.