PERENfra announces Perennial Infrastructure Fund I

Rhea-AI Summary

PERENfra has launched the Perennial Infrastructure Fund I, a private investment fund targeting $125 million to invest in core water infrastructure assets. The Fund has secured strategic investments from Garney Equity Holdings and Ferguson Ventures, positioning itself as the first investment vehicle focused solely on water infrastructure.

The Fund has already begun allocating capital, with plans for full deployment by 2026. Initial investments include financing, designing, constructing, owning, and operating six new water and wastewater treatment plants. The Fund has attracted various US-based family offices as initial partners and expects to be fully subscribed by early 2025.

Led by Founder and CEO Jeff C. Nelson and President Gary Brauchle, PERENfra has operated independently since 2020. The Fund aims to address the unfulfilled capital needs in the water infrastructure market while delivering long-term returns to investors.

Positive

• Secured strategic investments from major industry players Garney Equity Holdings and Ferguson Ventures
• Already has concrete plans for six water and wastewater treatment plants
• Operating in the $340B North American construction market
• Clear deployment timeline with full allocation expected by 2026

Negative

• None.

Insights

Investment Analyst

Ferguson's strategic investment in the Perennial Infrastructure Fund I marks a calculated entry into the critical water infrastructure sector, offering multiple strategic advantages for shareholders. The investment provides three key benefits:

1. Market Intelligence & Innovation Access: Through this partnership, Ferguson gains privileged insights into emerging water infrastructure technologies and market trends. This intelligence could strengthen their core distribution business by allowing early identification and adoption of innovative solutions.

2. Strategic Positioning: The water infrastructure sector faces an estimated $1 trillion investment gap over the next decade. By partnering with Garney, the largest water contractor in the U.S., Ferguson positions itself advantageously in this growing market. The fund's focus on six water treatment plants with long-term contracts suggests stable, recurring revenue potential.

3. Competitive Differentiation: This investment could enhance Ferguson's value proposition to customers by deepening their expertise in sustainable water solutions. The partnership with PERENfra and Garney could lead to exclusive distribution arrangements or early access to innovative water technologies.

While the investment size isn't disclosed, the fund's modest $125 million target suggests a measured approach that limits downside risk while providing significant strategic upside. The focus on sole-sourced opportunities indicates potential for higher returns through reduced competition and streamlined development processes.

DENVER, Feb. 13, 2025 /PRNewswire/ -- PERENfra LLC ("PERENfra") today announced the launch of Perennial Infrastructure Fund I™ (the "Fund"), a private investment fund focused on core water infrastructure assets. The Fund aims to provide investors with income and long-term capital appreciation through investments in safe, sustainable, efficient water solutions in a growing industry.

With a target size of $125 million, the Fund has successfully closed multiple limited partner (LP) commitments and is seeking to be fully subscribed by early 2025. The Fund is led by Jeff C. Nelson, the Founder and CEO of PERENfra, along with Gary Brauchle, its President.

PERENfra is Manager of the Fund's General Partner and PIF Equity Partners, LLC is the Fund's investment manager. PERENfra has operated independently since being formed in 2020, and after building a substantial opportunity pipeline and portfolio of sustainable water infrastructure investments, PERENfra decided to launch the Fund to support its continued expansion and growth.

The Fund has brought in two strategic investors: Garney Equity Holdings and Ferguson Ventures. The two have teamed up with PERENfra to position the Fund as the first of its kind investment vehicle focused solely on water infrastructure.

Jeff Nelson, Founder and CEO of PERENfra, said:

"We're humbled and excited by the support of our investors and partners in the Fund. There is an unfulfilled need for capital in the water infrastructure market, and we're ready to address that demand. We're confident in our investment strategy, and we look forward to continuing our positive environmental and social impacts while delivering attractive long-term returns to our investors."

Garney Equity Holdings is the investment arm of Garney Companies Inc., the largest water and wastewater contractor in the U.S., and is uniquely positioned to provide valuable insight into the current state of U.S. water infrastructure. With decades of experience addressing complex water and wastewater challenges in all sectors including municipal, federal, industrial and private owners, Garney recognizes and appreciates the critical need to modernize and strengthen the nation's water infrastructure. "Garney is proud to support the Fund's goals, which align closely with our purpose: Building Sustainable Futures with the World's Most Precious Resources – Water and People®," said David Burkhart, CEO at Garney. "By investing in the Fund, we're advancing a shared vision of resilient, sustainable water solutions that will serve communities for generations to come."

Ferguson is the largest value-added distributor serving the residential and non-residential specialized professional. Ferguson Ventures is the corporate venture capital and strategic partnering arm of Ferguson, focusing on innovation within the $340B North American construction market.

"Ferguson Ventures sees this investment in the Perennial Infrastructure Fund I as a strategic step toward enhancing innovation and sustainability within the water infrastructure sector," said Blake Luse, Managing Director at Ferguson Ventures. "By engaging with PERENfra and Garney, we aim to deepen our understanding of emerging technologies and industry trends that can enrich our ability to serve our customers. This collaboration is in line with our core mission to provide value-added solutions and supports our commitment to fostering sustainable water solutions for the communities we serve."

The Fund has made significant progress in allocating its capital and anticipates full deployment by 2026. The initial investments are supported by long-term contracts to finance, design, construct, own, and operate six (6) new water and wastewater treatment plants.

The Fund has attracted substantial interest from investors knowledgeable about the water industry and the challenges associated with the traditional investment options in the sector. The Fund focuses on unique opportunities that are sole-sourced which improves efficiency and greatly improves the timeline to develop and construct much needed infrastructure.

In addition to Garney and Ferguson, the Fund's initial LP's are comprised of various US-based family offices.

Davis Graham and Stubbs LLP served as legal counsel to the Fund.

About PERENfra:
PERENfra invests in, acquires, develops, and operates essential water infrastructure. Our assets provide our clients and partners reliability, efficiency, and quality in a market that is suffering from severe underinvestment and aging infrastructure. Led by a team of experts with more than 120 years of combined experience in the water sector, PERENfra is focused on ensuring water quality, conservation, and accessibility across the United States.

About Garney: 
Garney Companies Inc. is the national leader in water and wastewater infrastructure. Since 1961, Garney has been committed to delivering clean, safe drinking water and protecting public health through essential water and wastewater systems. Garney specializes in self-performing construction services for water and wastewater pipelines, treatment facilities, pumping stations, water storage tanks, and industrial/heavy civil projects through conventional and collaborative delivery methods for municipal, federal, and private sector clients. As a 100% employee-owned company with 18 regional offices and 2,500 employee-owners, Garney is committed to advancing the future of water and wastewater infrastructure. At the core of Garney's work is its guiding purpose: Building Sustainable Futures with the World's Most Precious Resources – Water & People®.

About Ferguson:

Ferguson (NYSE: FERG; LSE: FERG) is the largest value-added distributor serving the specialized professional in our $340B residential and non-residential North American construction market. We help make our customers' complex projects simple, successful and sustainable by providing expertise and a wide range of products and services from plumbing, HVAC, appliances and lighting to PVF, water and wastewater solutions and more. Headquartered in Newport News, Va., Ferguson has sales of $29.6 billion (FY'24) and approximately 35,000 associates in nearly 1,800 locations.

View original content:https://www.prnewswire.com/news-releases/perenfra-announces-perennial-infrastructure-fund-i-302375842.html

SOURCE Garney Construction and PERENfra

FAQ

What is the target size of PERENfra's Perennial Infrastructure Fund I?

The Perennial Infrastructure Fund I has a target size of $125 million and expects to be fully subscribed by early 2025.

How many water treatment plants will the Perennial Infrastructure Fund I initially develop?

The Fund's initial investments include six new water and wastewater treatment plants that it will finance, design, construct, own, and operate.

When does PERENfra expect to fully deploy the Perennial Infrastructure Fund I?

PERENfra anticipates full deployment of the Fund by 2026.

Who are the strategic investors in PERENfra's Perennial Infrastructure Fund I?

The Fund has two strategic investors: Garney Equity Holdings, the investment arm of the largest water and wastewater contractor in the U.S., and Ferguson Ventures, the corporate venture capital arm of Ferguson.

When was PERENfra established and who leads the company?

PERENfra was formed in 2020 and is led by Founder and CEO Jeff C. Nelson, along with President Gary Brauchle.