Asset Manager

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Consolidated Water Co. Ltd.

Consolidated Water Co. Ltd. develops and operates advanced water supply, water treatment and reuse plants, and water distribution systems in the United States...

Consolidated Water Co. Ltd.

Consolidated Water Co. Ltd. develops and operates advanced water supply, water treatment and reuse plants, and water distribution systems in the United States and the Caribbean. The company provides design, engineering, management, equipment manufacturing and operating services applicable to commercial and municipal water production, supply and treatment, and industrial water and wastewater treatment. Consolidated Water operates in several locations including the Cayman Islands, the Bahamas, and the British Virgin Islands.

General information

Firm type

Asset Manager

Year founded

1973

Location

Region

Latin America

Country

Cayman Islands

City

Grand Cayman

Corporate office

Grand Cayman, Cayman Islands

Principals

Frederick W. McTaggart

Chief Executive Officer

David Sasnett

Chief Financial Officer

Sector focus

InfrastructureReal Estate

Frequently asked questions

What is Consolidated Water's core business model?

The firm builds, owns, and operates seawater desalination plants—predominantly reverse-osmosis facilities—and sells bulk potable water under long-term take-or-pay contracts to government-owned utilities. This eliminates development risk for the host government and shifts construction and operating risk to Consolidated Water in exchange for decades-long guaranteed offtake agreements.

How does Consolidated Water earn revenue outside the Cayman Islands?

Through its services segment, the firm designs and constructs desalination plants and water treatment facilities for third parties, primarily in the United States. In 2023, this segment expanded dramatically when Consolidated Water was contracted to build a large desalination facility for an industrial client in Arizona, marking a geographic pivot from island to mainland US water-stressed markets.

What is the strategic significance of the Arizona project?

The Arizona project represents the firm's entry into the mainland US industrial water market and contributed to the doubling of revenue in 2023. By providing desalination technology to an inland, drought-exposed state, Consolidated Water signaled it can adapt its core competency—turning non-potable water into drinking water—to geographies that are not islands, expanding its addressable market materially.

Why is Consolidated Water structured as a Cayman Islands company despite a US listing?

The firm was founded in 1973 to solve a Cayman Islands infrastructure problem, and the Cayman exempted-company structure has persisted as a tax-neutral holding vehicle. The NASDAQ listing provides access to US equity capital markets and liquidity for institutional shareholders, while the Cayman domicile keeps the parent entity outside the US corporate tax net for non-US-source income.

What risks does Concentrated Water's business model face?

The two most immediate risks are concession concentration and climate resilience. The Blue Hills plant in Grand Cayman has historically generated a material share of bulk-water revenue, and any renegotiation or non-renewal of that contract would materially impact earnings. Additionally, more frequent and intense hurricanes in the Caribbean basin threaten physical plant damage and prolonged operational downtime, risks only partially mitigated by insurance and plant-hardening measures.

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