Utilities, and the deregulation of the water market

Following the deregulation of England’s water market in 2017, water retailers have been able to package the wholesale services of the owners of water infrastructure, and sell them directly to businesses.

Eyeing this opportunity, private equity firm Perwyn invested in water retailer Everflow in 2018. The firm has since achieved a partial exit in 2023, followed by a full exit in July of this year. Over the course of Perwyn’s ownership the retailer expanded to include other utilities, such as broadband and waste collection, as part of its offering.

On today’s Stories of Transformation we’re joined by Perwyn’s Andrew Harrison and Mike Rothwell, a partner and investment manager respectively, to discuss the firm’s investment in Everflow.

We cover the role deregulation played in Perwyn’s investment thesis (1:11); Everflow’s expansion outside of water (2:09); the long-term durability of demand for water (3:27); Everflow’s management team (4:10) and why Perwyn doesn’t use operating partners (4:51); the challenges of scaling a business (7:54); the appeal of outsourced water management (9:12); and how Everflow drove customer retention (10:53).