Aqua Resources today became the first company listed in London dedicated to investing in water, raising $100 million (£50 million) in a placing.

The fund, managed by FourWinds Capital Management, which also runs timber and commodities funds, will invest in water companies and water-to-energy, waste treatment and desalination projects around the world.

Hasan Askari, the fund’s chairman, said: “Water is, arguably, the most fundamental of all natural resources and notwithstanding our current preoccupation with fossil fuels is the next and, possibly, the biggest ever resource change that confronts us.”

Aqua is targeting annual growth of more than 15 per cent a year, and expects to invest around 80 to 85 per cent of its funds within 12 to 18 months.

The company, whose shares were placed by Landsbanki, hopes to take advantage of the growing number of pension funds and other investors looking to increase their exposure to infrastructure and environmental issues as well as diversify their portfolios.

Paul Fincham, managing director of investment funds at Landsbanki, said although market conditions were tough, there was strong interest from institutions in the UK and continental Europe, adding that investors were keen to gain access to a difficult asset class in which to invest directly.

The shares rose from €1 to €1.04.

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