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Morgan Stanley Infrastructure Partners Agrees to Sell Seven Seas Water

1. Morgan Stanley sells stake in Seven Seas Water to EQT Infrastructure. 2. Seven Seas operates 220 water treatment plants in North America. 3. The company focuses on long-term, inflation-linked contracts. 4. Seven Seas has a proven track record in high uptime and customer retention. 5. This sale showcases MSIP's capability in executing corporate carve-outs effectively.

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Why Bullish?

This sale highlights Morgan Stanley's effective asset management. Historically, similar transitions have led to positive market reactions for asset managers.

How important is it?

The article outlines a strategic move that showcases MS's operational excellence, which can positively influence investor sentiment.

Why Long Term?

The sale enhances investment liquidity and positions MS for future growth opportunities, similar to past divestitures improving funds' operational efficiency.

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NEW YORK--(BUSINESS WIRE)--Morgan Stanley Investment Management (MSIM), through investment funds managed by Morgan Stanley Infrastructure Partners (MSIP), its private infrastructure investment platform, today announced it has entered into an agreement to sell its ownership stake in Seven Seas Water Group (Seven Seas Water or the Company) to the EQT Infrastructure VI fund (EQT). Seven Seas Water Group is a developer, owner, and operator of water and wastewater treatment plants across North America, including the United States, the Caribbean, and Latin America, with over 220 plants currently under management. Through its Water-as-a-Service® (WaaS®) model, the Company delivers reliable, safe, and environmentally compliant water and wastewater treatment to a diverse customer base, including governmental, municipal, industrial and hospitality clients. The Company’s desalination and wastewater treatment plants sign long-term, inflation-linked contracts with take-or-pay minimum volume commitments creating stable, predictable cashflows. Operating in some of the most water-challenged geographies, Seven Seas Water ensures availability for potable and clean water, while maintaining its more than 20-year track record of high uptime, strong customer retention and a world-class health, safety, and environmental (HSE) performance. The Company is the result of a business separation from non-infrastructure activities which was conducted shortly after a public-to-private transaction. Under MSIP’s ownership, Seven Seas Water has experienced substantial growth expanding its footprint in the United States, particularly Texas, scaling to become the North American Water-as-a-Service® leader. The Company recently secured several high-profile long-term contracts, including with the South Texas Water Authority (STWA), as well as successful project delivery for the City of Alice in Texas. “Seven Seas Water exemplifies the infrastructure characteristics we prioritize – essential services, long-term inflation-protected cashflows, and operational excellence,” said Alberto Donzelli, Managing Director and Co-Head of Europe for Morgan Stanley Infrastructure Partners. “The Company’s Water-as-a-Service® model has proven highly effective across diverse markets, and we are proud to have supported their evolution into a market-leading platform.” Markus Hottenrott, Chief Investment Officer for Morgan Stanley Infrastructure Partners, added: “Seven Seas Water is another example of MSIP’s differentiated ability to execute corporate carve-outs and business separations, successfully conduct take-private transactions, build institutional-grade platforms and work with management teams to drive operational excellence. We are pleased to have created a resilient infrastructure business that delivers an essential service to communities and industries across North America and beyond.” About Seven Seas Water Group Seven Seas Water offers WaaS® solutions by providing outsourced water treatment and wastewater treatment and reuse solutions for governmental, municipal, industrial, property developer and hospitality customers. The Company’s water treatment solutions utilize seawater reverse osmosis and other purification technologies to produce potable and high purity industrial process water in high volumes for customers operating in regions with limited access to potable water. Seven Seas Water’s wastewater treatment and reuse solutions include scalable modular treatment plants, field-erected treatment plants and temporary bypass plants that are used by our customers to treat and convert wastewater into effluent or reclaimed water prior to being released back into the environment. Some of the Company’s wastewater and reuse solutions are provided by AUC Group, a Houston, TX based subsidiary. About Morgan Stanley Infrastructure Partners Morgan Stanley Infrastructure Partners (MSIP) is a leading global private infrastructure investment platform with approximately $18 billion in assets under management since inception. Founded in 2006, MSIP has invested in a diverse portfolio of over 40 investments across transport, digital infrastructure, energy transition and utilities. MSIP targets assets that provide essential public goods and services with the potential for value creation through active asset management. For further information about Morgan Stanley Infrastructure Partners, please visit www.morganstanley.com/im/infrastructurepartners. About Morgan Stanley Investment Management Morgan Stanley Investment Management, together with its investment advisory affiliates, has more than 1,400 investment professionals around the world and $1.6 trillion in assets under management or supervision as of March 31, 2025. Morgan Stanley Investment Management strives to provide outstanding long-term investment performance, service, and a comprehensive suite of investment management solutions to a diverse client base, which includes governments, institutions, corporations and individuals worldwide. For further information about Morgan Stanley Investment Management, please visit www.morganstanley.com/im. About Morgan Stanley Morgan Stanley (NYSE: MS) is a leading global financial services firm providing a wide range of investment banking, securities, wealth management and investment management services. With offices in 42 countries, the Firm’s employees serve clients worldwide including corporations, governments, institutions and individuals. For further information about Morgan Stanley, please visit www.morganstanley.com.

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