• Home
  •  
    Regions
    • Europe
    • UK & Ireland
    • DACH
    • Nordic
    • France
    • Southern Europe
    • Benelux
    • CEE
    • Asia
  •  
    Deals
    • Buyouts
    • Venture
    • Exits
    • Refinancings
    • Build-up
    • Turnaround
    • Secondaries
    • Advanced deals search
  •  
    Funds
    • Buyout
    • Venture
    • Mezzanine
    • Debt
    • Funds-of-funds
    • Secondaries
    • Fundraising pipelines
    • Advanced funds search
  •  
    GPs & LPs
    • GP profiles
    • LP profiles
    • GP news
    • LP news
    • Sponsors search
    • LPs search
  •  
    Secondaries
    • Deals
    • Funds
    • News
    • Analysis
  •  
    People
    • People moves
    • Analysis
    • In Profile
    • Q&A
    • Videos
    • Comment
  •  
    Analysis
    • In Profile
    • Fundraising
    • Q&A
    • Comment
    • Videos
    • Podcast
    • Reports
    • Data Snapshots
  •  
    Unquote Data
    • Deals search
    • Exits search
    • Funds search
    • Sponsors search
    • Advisers search
    • LPs search
    • League tables
    • Reports
  • Sign in
  • Sign in
    • You are currently accessing unquote.com via your Enterprise account.

      If you already have an account please use the link below to sign in.

      If you have any problems with your access or would like to request an individual access account please contact our customer service team.

      Phone: +44 (0)203 741 1137

      Email: Georgina.Lawson@acuris.com

      • Sign in
     
      • Newsletters
      • Account details
      • Contact support
      • Sign out
     
  • Follow us
    • Twitter
    • LinkedIn
  • Free Trial
  • Subscribe
Unquote
Unquote
  • Home
  • Regions
  • Deals
  • Funds
  • GPs & LPs
  • Secondaries
  • People
  • Analysis
  • Unquote Data
  • You are currently accessing unquote.com via your Enterprise account.

    If you already have an account please use the link below to sign in.

    If you have any problems with your access or would like to request an individual access account please contact our customer service team.

    Phone: +44 (0)203 741 1137

    Email: Georgina.Lawson@acuris.com

    • Sign in
 
    • Newsletters
    • Account details
    • Contact support
    • Sign out
 
Unquote
  • GPs

Water investing: money on tap?

  • Deborah Sterescu
  • 05 February 2010
  • Tweet  
  • Facebook  
  • LinkedIn  
  • Google plus  
  • Send to  

Water is back on tap as two companies in the area have generated interest from private equity this week, reports Deborah Sterescu.

The gas, water and multi-utilities sector has found favour with investors that prioritise sable, defensive sectors over riskier ones such as retail. Staid, it would seem, is now sound.

Water companies have long blipped on private equity's radar screens - recall the swathe of infrastructure funds that flocked to the UK's providers just a couple years ago, prompting the outspoken Guy Hands to declare at a conference that "private equity would own all the UK's water companies by 2008". Alas the exuberant period that followed saw investors herd instead towards consumer sectors, making Hands' statement now seem premature. But it may yet happen.

In the last week, there have been reports that Canadian investor Ontario Teachers' is currently considering a whopping £1.7bn takeover bid for its existing portfolio company Northumbrian Water, prompting an almost 12% jump in the business' shares on Monday to 289.5 pence. The move is no doubt yet another way for the LP to bulk up its direct investing activities, but it could also signify a renewed interest in British water companies.

Reports earlier this week also suggested that Charterhouse Capital Partners was the favourite to win the £500m bid for United Utilities Contract Solutions (UUCS), the non-regulated business that belongs to United Utilities, the UK's largest listed water company. The sale, which is being run by JP Morgan Cazenove, has reportedly attracted interest from firms including 3i, Advent International and KKR. This would mean that two of the three listed UK water companies are attracting interest from private equity, a territory long-dominated by infrastructure investors because of these companies' long-term stable cashflows and regulatory framework.

This is because taking these utility companies private has become increasingly attractive in terms of returns, especially if an investor is able to secure affordable debt, something the last month has indicated could be a definite possibility this year as all of the major four buyouts in the last week of January involved loans from a club of banks.
Northumbrian provides 4.4 million customers with water in the northeast and southeast England, while UUCS provides metering, waste treatment and connections for utility companies. Charterhouse bought a similar company to UUCS back in 2007, when it acquired the German sub-metering and billing business ista International from CVC Capital Partners in a €2.4bn deal.

 

 

  • Tweet  
  • Facebook  
  • LinkedIn  
  • Google plus  
  • Send to  
  • Topics
  • GPs
  • Investments
  • Buyouts
  • Infrastructure
  • 3i
  • Guy Hands
  • Advent International
  • Charterhouse Capital Partners
  • KKR

More on GPs

EU foreign subsidies regulations
EU FSR could impact PE fundraising with potential rise in ‘clean funds’

FSR could lead GPs to create funds without foreign LPs; red tape around sovereign wealth funds likely

  • Regulation
  • 01 September 2023
Jan Cerny of BHM Group
BHM Group builds on PE strategy, eyes European medtech and renewable energy acquisitions

Czech Republic-headquartered family office is targeting DACH and CEE region deals

  • Investments
  • 01 September 2023
Bettina Curtze of Redalpine
Redalpine expands leadership team amid CHF 1bn-plus fundraise

Ex-Rocket Internet leader Bettina Curtze joins Swiss VC firm as partner and CFO

  • Venture
  • 31 August 2023
Canary Wharf and the financial centre of London
IPO offers CVC chance to become multi-asset consolidator

Potential IPO also offers monetisation solution for founders and GP stakes investor Blue Owl

  • GPs
  • 25 August 2023

Latest News

Fund closes in US dollars
  • Funds
Stonehage Fleming raises USD 130m for largest fund to date, eyes 2024 programme

Multi-family office has seen strong appetite, with investor base growing since 2016 to more than 90 family offices, Meiping Yap told Unquote

  • 05 September 2023
Clinical trials and biotechnology
  • Buyouts
Permira to take Ergomed private for GBP 703m

Sponsor deploys Permira VIII to ride new wave of take-privates; Blackstone commits GBP 200m in financing for UK-based CRO

  • 04 September 2023
Public sector software
  • Exits
Partners Group to release IMs for Civica sale in mid-September

Sponsor acquired the public software group in July 2017 via the same-year vintage Partners Group Global Value 2017

  • 04 September 2023
EMEA Public to Private M&A
  • Investments
Change of mind: Sponsors take to de-listing their own assets

EQT and Cinven seen as bellweather for funds to reassess options for listed assets trading underwater

  • 04 September 2023
Back to Top
  • About Unquote
  • Advertise
  • Contacts
  • About Acuris
  • Terms of Use
  • Privacy Policy
  • Group Disclaimer
  • Twitter
  • LinkedIn

© Merger Market

© Mergermarket Limited, 10 Queen Street Place, London EC4R 1BE - Company registration number 03879547

Digital publisher of the year 2010 & 2013

Digital publisher of the year 2010 & 2013