Water Company and New Fees, What is CVC?

SBINSIDER NEWS\OPINION |February 1st, 2025

Arizona is unique in a number of ways and one of those is common water supplies in unincorporated areas. For many years, SaddleBrooke has been serviced by Lago Del Oro Water to the satisfaction of most customers. This firm is a private company which is regulated by the Arizona Corporate Commission.

Despite the overall arid nature of this area, our local water supply is very plentiful due to our location at the bottom of the Catalina Mountains. It has also been very cheap. The average bill is less that $50 a month (not including sewage).

Recently we all received letters announcing the purchase of Lago Del Oro by a larger firm, JW Water. The letter stated that it acquired all of the water companies that were part of Arizona Robson communities. The stated reason was that JW Water as a company is focused on only one business which is water supply and wastewater treatment, while Robson is a development company with a different focus. The letter made the claim that “ongoing drought and water scarcity and increased regulatory challenges” created the need for more robust systems of delivery and treatment.

The letter goes on to say that JW Water will be “investing in water and wastewater infrastructure” and that “rate adjustments are going to be necessary,” which means our costs will go up.

A bit of internet investigation (CVC.COM) revealed that JW Water itself, was recently acquired by a company named CVC in November of 2024. According to the website for that company they are :

CVC is a leading global private markets manager focused on private equity, secondaries, (sic) credit and infrastructure with a global network of 30 local offices and €191 billion of assets under management.

Further, according to the CVC website:  A systematic approach to creating sustainable value starts by investing in fundamentally sound, well-managed businesses which creates a diversified portfolio, which is actively supported. 

Apparently, CVC is in the business of taking investments from a variety of sources as portfolio managers. Perhaps water companies provide a torrent of positive cash flows.

What does this ownership change mean for SaddleBrooke?

Besides our monthly costs going up, it is impossible to know what changes will happen. SBINSIDER tried to contact the UK based company and will report back if and when that happens. Also, SBINSIDER will be in touch with the Arizona Corporate Commission to determine if it knew that JW Water is owned by a foreign entity and was the acquisition by CVC known when JW Water was getting approval to purchase the Robson assets?

Further, were the HOA’s of SaddleBrooke given the opportunity purchase Lago Del Oro or alerted that the sale was pending? A case can be made that the HOA’s are not in the business of supplying water or handling wastewater as part of it operation. Still, if the Boards were not alerted to the proposed transactions it begs the question as to why.

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