S13E13 - What Does a Billion-Dollar Exit Really Look Like?
How Does Water-as-a-Service Drive Billion-Dollar Exits in Infrastructure Investment?
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⬇️ IN THIS VIDEO ⬇️
Seven Seas Water Group is a vertically integrated water infrastructure platform that designs, builds, finances, operates, and maintains water and wastewater treatment facilities under long-term service agreements. The company recently completed a successful exit from Morgan Stanley Infrastructure Partners to EQT Infrastructure, operating over 210 water-as-a-service contracts across the Caribbean and United States with particular expertise in brackish water desalination and decentralized treatment systems.
Henry Charrabe is the CEO of Seven Seas Water Group who led the company through a successful four-year transformation and exit, previously serving in executive roles at Fluence Corporation, and is recognized for pioneering the application of water-as-a-service business models in US municipal and industrial markets.
🌶️ KEY SPICES 🌶️
💰 Vertically integrated platform - Seven Seas handles design, engineering, financing, construction, and operations in-house, eliminating margin stacking for lower costs and faster execution than multi-partner competitors
⚡ Proven track record at scale - 210+ active water purchase agreements with 15-30 year terms demonstrate repeatable success new entrants cannot easily replicate
🔄 Patient capital meets expertise - The exit proves infrastructure investors holding 4+ years combined with deep water knowledge generate exceptional returns in underinvested US infrastructure
📊 Public vs private dynamics - Public water equities offer lower risk and liquidity; private funds deliver superior returns for patient capital—both forming a necessary growth ecosystem
🥜 IN A NUTSHELL 🥜
Why is water-as-a-service winning? Performance-based contracts align incentives—investors only get paid when delivering contracted water quality and quantity.
What makes the US market attractive? Massive infrastructure underinvestment, creditworthy municipal off-takers, and decentralized systems create exceptional deployment opportunities.
How do private and public returns differ? Private water investments achieve 10x returns with patient capital, while public equities deliver 14-15% annually with lower risk and immediate liquidity.
Why fewer IPOs today? Cyclical markets favor private-to-private exits when strategic buyers offer better valuations than public market multiples.
What's the biggest opportunity? Reducing waste beats new supply—California loses 32% to inefficiencies, making conservation more economically attractive than desalination.
#️⃣ Mentioned Links #️⃣
Seven Seas' website
Robin Castelli's book
⏰ TIME CODES ⏰
00:00 Live from NYC's Climate Week
04:00 Henry Charrabé (Seven Seas Water)
25:49 John Rosenberg (Loughlin Water Partners)
40:08 Robin Castelli (Orange Ridge Capital)
50:01 Closing
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