Water Asset Management, LLC (WAM) provides exposure to the water sector in three ways: long only equity, long short equity, and in private investments. The Firm launched its long short equity hedge fund, TRF Master Fund (Cayman) LP (“TRF”) in January 2006, made its first private investment in 2007, launched a long only vehicle in January 2010, and had a final close on a private equity fund, Water Property Investment LP (“WPI”, the “Fund”) in 2014. The list of vehicles and prior investments is below.
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A global long/short equity fund investing in public and private water related companies and assets. The fund has been in existence since January 2006. The Fund's objective is to generate consistent returns with minimal correlation to major market or commodity indices. In addition the Fund offers investors the option to invest up to 10% of their assets in water related private equity investments made by Water Asset Management.
Water Asset Management's Global Water Equity strategy provides global exposure to the significant macro scarcity trends in water. Similar to TRF Master Fund (Caymen) LP, the long only strategy investment approach is driven by top down water thematic trends coupled with fundamental value oriented individual stock selection, and invests across the five water industry sectors.
Water Property Investor, LP (“WPI”) will invest primarily in a diversified portfolio of water resources, in the water-stressed Western U.S., purchased at agriculture value. These resources shall then be repackaged and repurposed and sold to higher value municipal, industrial and environmental consumers, with the objective of generating a non-correlated net IRR of 17%-22% with a current yield of approximately 3-4%. It is expected that the portfolio will be made up of approximately 70% water-rich agricultural properties and approximately 30% stand-alone water resources. In With regards to the water-rich properties, WAM has partnered with R.D. Offutt Co, (“RDO”), one of the largest farmers in the U.S. WPI will develop and market the water assets while our farming partner manages the farming operations of the properties, mitigating agriculture risk.
PRIVATE EQUITY INVESTMENTS:
WAM purchased 2,724 acre-feet equivalent of effluent credits interest (treated wastewater) from the town of Prescott Valley, Arizona. The project is being marketed to residential and commercial real estate developers as well as land owners.
WAM purchased 36,261 acre-feet of appurtenant certified annual water rights at Winnemucca Farms (“WAL”) in a joint venture with R.D. Offutt Company, one of the largest U.S. farming and food processing companies. The property also included 14,486 acres of irrigated land and 5,514 acres of non-irrigated land and 118 center pivot irrigation systems and 57 deep-water irrigation wells with 40 year history of uninterrupted water usage. The property has been leased back to RDO to provide a current yield. U.S. Water and Land will seek to develop water resource activities including the sale/lease of water for: industrial, power generation and municipal and regional water users.