In a significant development for the global water technology sector, Abu Dhabi’s sovereign wealth fund Mubadala Investment Company and South Korea’s Glenwood Private Equity have formally concluded their co-investment in NanoH2O Co. Ltd. The transaction, which received all necessary regulatory approvals, marks a strategic move by both investment firms to capitalize on the growing global demand for advanced water desalination solutions.
NanoH2O, originally established as a division of LG Chem in 2014 before spinning off as an independent entity earlier this year, maintains its headquarters in Seoul. The company has established itself as a pioneering force in reverse osmosis membrane technology, which represents the most energy-efficient methodology for large-scale desalination and brackish water treatment compared to conventional thermal processes.
The investment consortium, led by Mubadala and Glenwood, recognizes NanoH2O’s exceptional market position with over 95% of its revenue generated internationally. The company serves diverse municipal and industrial clients across global markets, positioning it at the forefront of addressing worldwide water scarcity challenges.
Sangho Lee, CEO of Glenwood Private Equity, emphasized the strategic rationale behind the investment: ‘Our participation in NanoH2O demonstrates our focused approach toward identifying high-quality businesses through corporate carve-out opportunities. We remain dedicated to supporting NanoH2O’s mission of delivering sustainable solutions to global water challenges while accelerating the company’s expansion and international impact alongside our investment partners.’
Mohamed Albadr, Mubadala’s Head of Asia, highlighted the alignment with the fund’s broader investment strategy: ‘We maintain strong conviction in NanoH2O’s technological leadership and long-term growth trajectory. This investment resonates with our commitment to partnering with organizations that develop solutions for global challenges while reinforcing our established presence in South Korea and broader Asian markets.’
Abdulla Mohamed Shadid, Head of Energy and Sustainability at Mubadala, provided additional context regarding the investment’s strategic importance: ‘The convergence of water security and decarbonization initiatives represents a critical global priority. Reverse osmosis membrane technology plays an essential role in delivering scalable water solutions with reduced energy intensity. NanoH2O distinguishes itself through proven technology, global operational footprint, and an innovation-driven business model. Our investment will facilitate the company’s expansion into growing markets including the MENA region and other key international territories.’
The partnership signifies a strengthened commitment to advancing sustainable water technology solutions while creating long-term value through technological innovation and market expansion.