The founder and CEO of water infrastructure investor PERENfra, Jeff Nelson, says that investment opportunities exist in middle market US water deals that larger infrastructure funds are not interested in.

“Regarding our strategy, we are water infrastructure only: pipelines, treatment plants and groundwater wells,” Nelson said in an interview with this publication. “There are other water funds out in the market, but they’re focused on technology and water rights.”

PERENfra completed fundraising for its inaugural Perennial Infrastructure Fund in December 2025, with an oversubscribed USD 142.8m in committed capital.

“We are agnostic when it comes to tech and always try to utilize the best applications to ensure our operating expenses are as efficient as possible,” Nelson said. “We also work with industry partners that want to own water rights. We just want to own the infrastructure to move and treat that water.”

“The big infra funds that everyone knows like the idea of water, but they all want to write big equity checks,” he said. “Water is a piece of what they do alongside other infrastructure verticals. The niche that we have uncovered with our first fund is that we are living in the small to middle market. We are writing equity checks from USD 10m to USD 50m, and we have a lot of opportunities in our pipeline.”

Nelson noted a key partnership it has forged with two of its limited partners.

“Garney Companies Inc. and Ferguson Ventures are both strategic LP investors in the fund. We have a great partnership with both and we hope to grow those relationships in the future.”

“Garney is the largest dedicated water contractor in the US. In addition to their LP returns, Garney has the opportunity to bid on the construction of our greenfield assets, opportunities they wouldn’t normally see,” Nelson said. “Garney can also provide solutions through creative contract delivery methods unlike other contractors that don’t focus only on water.”

Ferguson is a large, NYSE-traded company and is the largest value-added distributor in the North American water construction market, Nelson said.

“Many don’t realize they have a strategic infrastructure group, and they have the opportunity to supply key components for our Fund assets,” Nelson said.

“Neither Garney or Ferguson have a first right on any construction or procurement opportunities, we also use other vendors to ensure we provide the best value for our investors through value engineered installed costs,” he added.

In October 2023, PERENfra announced the signing of a Water and Wastewater Development and Services Agreement with the Montgomery County Municipal Utility District No. 173.

Under the terms of the agreement, PERENfra is responsible for the financing, design, construction, ownership, operation, and maintenance of water and wastewater facilities that will provide essential services to two prominent neighboring developments within the MUD service area in Conroe, Texas.

In a separate November 2024 press release, PERENfra announced the signing of a Water and Wastewater Service Agreement with Harris County Municipal Utility District No. 586.

Under the agreement, PERENfra is responsible for the financing, design, construction, ownership, operation, and maintenance of water and wastewater facilities that will provide essential services on a wholesale basis for approximately 1,500 customer connections within the district service area for at least the next 50 years.

Part of the family

“When we launched the fund, our first close was June 2024, and our target raise was USD 125m,” Nelson said. “It helped with us being a first-time fund that we did have some seed assets contracted, and we weren’t just raising capital around an idea.”

Perennial found willing investors in some family offices around the US, according to Nelson.

“We weren’t big enough to knock on the doors of institutional investors or endowments, so we focused on strategic partners and family offices,” Nelson said. “We were fortunate to have success in partnering with family offices in Denver, Chicago, Kansas City, North Carolina, and other areas of the US. We realized that once our story got out, a lot of the family office CIOs talk to each other and it helped us close the Fund out by late 2025, oversubscribed at USD 143m.”

The firm is in the exploratory phase for the launch of a second fund, Nelson said.

“We are not raising a second vehicle yet, but we are exploring ideas,” Nelson added. “We are deploying quickly out of Fund I, so we’ll be making some decisions later this year, and if it is another fund structure, I think it will be much bigger than Fund I.”

Broadening its horizons

PERENfra is searching for opportunities in fast-growing metro areas in the West and Southwestern US, Nelson said.

“We are focused in areas that are experiencing fast-paced economic development; in Texas around Houston, Austin, San Antonio, Dallas-Fort Worth, and here in Colorado, around Denver, and in Arizona around Phoenix,” Nelson said. “There are a lot of single-family homes being built, and there is increased water need around the advent of AI and hyperscalers, including power generation facilities that support data centers. They all need water, and a lot of them rely on groundwater, and groundwater is tight in some areas of the US.”

Nelson said PERENfra and its partners are equipped to meet the challenge.

“Between our PERENfra team, our strategic investors Garney and Ferguson, and our industry partners focused on water rights and tech, we provide a unique solution when it comes to water: how to efficiently supply and treat it in a safe, environmentally conscious way, so our clients can focus on building their own projects and businesses without worrying about where their water is coming from,” Nelson said.