Swedish national pension fund AP1 and the BAE Systems pension fund are among investors in a water infrastructure fund launched by Resonance Asset Management.
The fund, targeting assets in Europe and Asia, has attracted $300m (β¬269m).
Resonance, part of Australiaβs Fidante Partners, said the fund was the first to focus solely on the global industrial water-treatment industry, which it said was worth Β£53bn (β¬63bn).
Mikael Angberg, chief executive at AP1, said its commitment was part of a wider strategy to promote sustainable investment.
βWater scarcity and water-treatment issues are cornerstones of AP1βs resource efficiency-focused sustainability strategy,β he said.
βWe are therefore very excited to be partnering with Resonance in the first institutional fund exclusively focused on financing industrial water-infrastructure projects.β
Vikram Aggarwal, alternatives investment manager for the BAE Systems pension fund, said generalist infrastructure funds had βhistorically overlookedβ water, mainly because projects were considered too small and bespoke.
A first investment for the fund has been made in a coal-to-chemical waste-water reuse plant in China, according to Lydia Whyatt, managing director of water investments.
