Water Capital Partners is a company formed to source and develop water sector infrastructure investments and has worked with one of the world’s oldest, largest and most respected private equity firms.  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 Suez 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-Year Concession Agreement with the BMUA to pay off all of the Authority’s existing debt which has significantly improved 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/Suez concession company will have comprehensive responsibility to provide customer service, operate the system and make substantial capital investments to assure optimized asset management.

Middletown, Pennsylvania

On December 30, 2014 KWP Capital closed its second Concession Contract investment with KKR. We assisted in the development and financing of a 50-year public-private partnership for providing water and wastewater services to the Borough of Middletown, PA. Under the terms of the agreement, KKR and Suez have made an initial investment of $43 million which will be used to eliminate the City’s existing debt and pension liability as well as improve its finances. The KKR/United Water joint venture will invest another $83 million in infrastructure improvements over the term of the contract. This innovative approach builds on the model previously pioneered by the same team in Bayonne, NJ. 

Water Capital Partners will continue to manage investments in the Bayonne and Middletown concession companies and will assist Suez in its on-going oversight and operational management 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.