Private equity has rapidly become a central force in the global water sector, driving consolidation and reshaping the competitive landscape. Since 2015, more than 435 transactions have established water as an infrastructure-like asset class, with over 132 firms currently holding active positions. While the U.S. anchors this activity, accounting for nearly three-quarters of the portfolio companies, firms are also securing scalable platforms across treatment, engineering services, and digital technologies.
Despite ongoing deal flow, structural headwinds are extending holding cycles and constraining liquidity. Fundraising has slowed, the initial public offering market remains subdued, and exits are lagging acquisitions. Even with moderating interest rates and inflation, investors are facing valuation gaps and limited divestment options, relying heavily on strategic sales and secondary buyouts to recycle capital.
Nonetheless, the sector presents a defensible long-term investment thesis. Core segments, such as treatment and services, remain reliable. Recent significant exits—such as Ecolab’s US$1.8 billion acquisition of Ovivo and Western Midstream’s US$1.5 billion purchase of Aris Water—indicate a strong appetite for water solutions. A new wave of potential exits is also being closely monitored, highlighting water’s evolution as both a consolidation play and a growth story.
This 2015–2025 analysis assesses private equity’s growing footprint in the water sector, drawing on Bluefield’s proprietary M&A transactions database–acquisitions and exits–across 25 countries.
Table of Contents
- Data Scope and Methodology
- Private Equity’s Investment Trends in Water
- PE Acquisition Trends and by Category
- Lifecycle of PE Water Portfolio Companies
- Private Equity’s Footprint in Water: Deals, Exits, and Geography
- Exit Pathways for PE Firms in Water
- Water Sector IPO Form PE Firms
- Top PE Players Driving Water Sector M&A
- Interest Rates, Inflation, and Private Equity Headwinds
- Water PE Exits and The Next Wave Ahead
