Water Finance Options
Financial concepts and innovative business models for water projects
Since its inception in 2010 Grasshopper Investments is focused on financing structures in the water sector. It is driven by the lack of availability of financing models for water projects, although there is a high demand for financing of urgently needed investment in water infrastructure, especially in emerging markets.
Grasshopper Investments has developed new financing concepts and business models that allow different approaches to private investments in the water sector and, at the same time, promoting sustainable development in its target markets.
Grasshopper Investments area of business includes the following:
- Identification of sustainable income opportunities in the water sector
- Development of new financing and business models for water projects
- Design of transparent investment models for private and institutional investors with a focus on emerging economies
- Promoting social and economic development in emerging economies through sustainable overall concepts
Investment Models and Structures
Closed funds
In 2012/2013 the Grasshopper Clean Water Fund I was structured as a mutual fund and placed in Germany. The fund addressed private and institutional investors. The funds concept with maturity at the end of 2019 allows the funding of water projects to improve drinking water quality through initial introduction or modernization of water disinfection.
Direct investments
To enable direct investment opportunities in water projects Grasshopper Investments in 2013 developed a simple investment mode: Investors invest in a specific project and all the necessary water treatment applications. The technology is often containerized and pre-installed and then rented out over the lifetime of the containerized solution and the water project.
PE funds and water bonds
Specifically to meet the needs and regulatory requirements of institutional investors Grasshopper Investments developed bonds for the water sector as well as Private Equity structures - with a focus on international investors and project structures.
Refinancing through tradable permits
Another innovative approach developed by Grasshopper Investments is to generate CO2 Tradable Permits through water projects that can then be utilized to refinance such water projects.
Closed funds
In 2012/2013 the Grasshopper Clean Water Fund I was structured as a mutual fund and placed in Germany. The fund addressed private and institutional investors. The funds concept with maturity at the end of 2019 allows the funding of water projects to improve drinking water quality through initial introduction or modernization of water disinfection.
Direct investments
To enable direct investment opportunities in water projects Grasshopper Investments in 2013 developed a simple investment mode: Investors invest in a specific project and all the necessary water treatment applications. The technology is often containerized and pre-installed and then rented out over the lifetime of the containerized solution and the water project.
PE funds and water bonds
Specifically to meet the needs and regulatory requirements of institutional investors Grasshopper Investments developed bonds for the water sector as well as Private Equity structures - with a focus on international investors and project structures.
Refinancing through tradable permits
Another innovative approach developed by Grasshopper Investments is to generate CO2 Tradable Permits through water projects that can then be utilized to refinance such water projects.
The German law firm "Landgraf Schneider Rechtsanwälte PartG” is our legal partner for water projects. Landgraf Schneider is specialized in the water sector as well as in capital markets law, financing, PPP structures and international corporate law.
Wilo Financial Services is our finance partner for pump replacements, through its SMART finance model. SMART finance means innovative and intelligent financing solutions, which allow for flexible investments compared to conventional financing, ensuring that the process of purchasing a new pump or replacing a pump is as efficient as possible.