CITIC Capital leads Series D for Organica Water

The investment is being made via CITIC’s Silk Road Fund, which targets geographies covered by China’s One Belt One Road (OBOR) agenda. Additional participants include existing backers the International Finance Corporation, US-based RNK Capital and WLR China Energy, a joint venture between Huaneng Capital, Invesco and WL Ross & Co.

Idinvest Partners, a French GP focused on Chinese markets, also participated in the round alongside Austria’s Gamma Capital Partners. The Series D is expected to be extended by a second tranche, with the fresh capital to be applied to the development of larger and more complex operations in Asia. Previous investors include Canadian specialist investor XPV Water Partners.

Founded in Hungary in 1998, Organica focuses on the design and installation of wastewater treatment facilities that are low-cost, attractive, small, odor-free and environmentally sound. Globally, it has installed more than 100 greenhouse-like units that make use of biological material technologies such as engineered root structures.

“Over the past few years the wastewater market is moving to a more decentralized approach, similar to what we have seen in the power sector,” Ari Raivetz, CEO of Organica, said in a statement. “Organica leads the way in this segment.”

Raivetz identified China as one of Organica’s most important growth markets in light of OBOR, whose jurisdiction overlaps the country’s existing Eurasian footprint. Current Asia Pacific operations encompass China, India, Indonesia, the Philippines and Australia. The company maintains offices in Shanghai, New Delhi, Jakarta, Budapest, and Princeton, New Jersey.

The CITIC Capital Silk Road Fund is targeting up to $600 million for a mandate that covers OBOR geographies. The envisioned portfolio would be split about 20% in China, 70% in other OBOR countries and 10% across the rest of the world. Sectors of interest include transport, logistics, energy generation and related utilities, as well as food and water safety.

The OBOR trade and infrastructure development plan was proposed by the Chinese government in 2013 as a combination of the Silk Road Economic Belt and the 21st Century Maritime Silk Road. It is estimated to require some $5 trillion in financing across the next five years and could account for 80% of annual global GDP growth in 2050 by connecting China with various markets across Asia, Europe, and Africa.

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• Topics
• Greater China
• Expansion
• Infrastructure
• Cleantech
• USA
• Europe
• China
• Asia
• CITIC Capital
• IFC
• WL Ross & Co.
• Growth capital