February 1, 2022
PERENFRA EXPANDS TEXAS FOOTPRINT WITH GENESES CAPITAL MANAGEMENT
SAN ANTONIO – (BUSINESS WIRE) – PERENfra LLC (PERENfra) and Geneses Capital Management, LLC (Geneses) announced today that they acquired three distinct water assets in Texas through their PERENfra Laguna, LLC partnership. PERENfra and Geneses collaborated to acquire over 6,400 Acre-Feet of perpetual Edwards Aquifer water rights and interests in Blue Water Regional Supply Project LP (BWRS) and Blue Water 130 Project LP (BW130). Within the Carrizo-Wilcox Aquifer, BWRS holds over 50,000 Acre-Feet and BW130 holds 20,000 Acre-Feet of permitted water rights. This transaction is incremental to a portfolio of Texas assets acquired by PERENfra in late 2020.
BWRS receives payments for raw groundwater from the Vista Ridge Regional Supply Project, a water pipeline that delivers water to the San Antonio Water System under a 30-year contract. BW130 receives payments from the owner of the 130 Pipeline, which delivers water to various municipal clients with contract terms of up to 40 years. The Edwards water rights are leased to municipal, environmental, and commercial customers under long-term contracts, including an agreement to lease water rights directly to the Edwards Aquifer Authority (the agency tasked with managing the Edwards Aquifer Habitat Conservation Plan). This partnership is an example of PERENfra’s commitment to environmental, social and governance (ESG) management as part of its responsible investment philosophy.
“Our team at PERENfra is pleased to execute this natural next step of our Texas water growth strategy in the San Antonio and Austin areas with Geneses. We are committed to support central Texas growth with sustainable water solutions and we will be a responsible partner to our clients and communities for years to come,” said Jeff Nelson, Founder and CEO of PERENfra.
“Demand for sustainable water supply, treatment, recycling and related infrastructure is likely to grow rapidly in the coming years,” according to Geneses partner Shauvik Kundagrami. “We are pleased to partner with PERENfra in investing in critical Texas water resources. The PERENfra team brings deep operational expertise to investing in the water sector which will benefit all stakeholders.”
“Barings was glad to be able to provide a long-dated, fixed rate financing solution in support of PERENfra and Geneses’ water rights acquisition,” said Barings Managing Director, Patrick Manseau. “We expect that PERENfra will manage these critical environmental resources responsibly and for the benefit of all stakeholders going forward.”
Capstone Partners served as financial advisor to PERENfra, while Davis Graham & Stubbs LLP served as legal counsel. Geneses’s equity investment was supported by legal counsel from Locke Lord LLP. Barings’s Private Debt Group provided the debt financing for the transaction with legal advice provided by Morgan Lewis & Bockius LLP.
PERENfra is a United States-based infrastructure company focused on operational and development opportunities in the water sector across various geographies. PERENfra takes a long-term approach to owning and operating essential assets and our team has a reputation of safely providing efficiency and certainty for our clients and partners. PERENfra currently owns and operates assets providing municipal and industrial water supply and environmental conservation.
ABOUT GENESES CAPITAL MANAGEMENT:
Geneses is a Houston-based firm focused primarily on opportunities across the water, energy, technology, and industrial landscape.
Barings is a $391+ billion* global investment manager sourcing differentiated opportunities and building long-term portfolios across public and private fixed income, real estate, and specialist equity markets. With investment professionals based in North America, Europe and Asia Pacific, the firm, a subsidiary of MassMutual, aims to serve its clients, communities and employees, and is committed to sustainable practices and responsible investment. Learn more at www.barings.com.
*As of December 31, 2021