EQT has agreed to acquire a 42% shareholding in Kelda Holdings Limited, the parent company of Yorkshire Water, marking a major investment in the UK’s regulated water sector. The transaction will be made through EQT’s Active Core Infrastructure strategy and remains subject to approvals, including antitrust review.
Yorkshire Water provides essential water and wastewater services to approximately 5.5 million individual customers across the Yorkshire region of the United Kingdom. The utility serves more than two million homes and about 140,000 businesses while operating nearly 700 treatment works, 120 reservoirs and more than 83,000 kilometers of mains.
The investment comes as the UK water sector enters a new investment cycle following the latest regulatory price review. Yorkshire Water has outlined plans to significantly increase capital spending to improve services, strengthen infrastructure, and enhance environmental performance.
EQT said it intends to work with the company’s existing shareholders and management team to support operational improvements and long-term investment. As part of that commitment, the firm plans to inject additional equity into the business to strengthen the balance sheet and support future investments.
A central component of the strategy is Yorkshire Water’s largest-ever environmental investment program, which allocates £8.3 billion over 2025-2030. The initiative aims to upgrade infrastructure, enhance environmental protection, and improve service reliability for customers across the region. The investment plan is also expected to support the hiring of more than 1,000 new employees locally.
EQT’s approach will focus on long-term ownership and active operational support, including advancing digitalization initiatives and improving environmental outcomes. The investment also aligns with the firm’s broader infrastructure strategy focused on resource efficiency and circularity.
The firm brings prior experience in the water and environmental services sector, including investments in the French drinking water and wastewater management company SAUR and the decentralized water and wastewater operator Seven Seas Water Group in the United States.
Across its private capital and infrastructure strategies, EQT has invested more than £10 billion of equity in UK-headquartered businesses directly. The firm’s current UK-related portfolio includes 13 headquarters-based companies and several subsidiaries that collectively support around 36,000 jobs across the country.
Government officials also welcomed the investment, highlighting the UK’s continued appeal to long-term global infrastructure investors.
KEY QUOTES:
“Our strong track record as a long-term active owner of large infrastructure assets makes EQT a natural partner for Yorkshire Water. We believe that as a responsible private capital manager, EQT can play an important role in modernizing the UK’s water infrastructure, and the Company’s multi-year investment plan reflects that objective. Together with Yorkshire Water’s existing investors, we will support the sector’s reform agenda and deliver service improvements for customers across the region and transparency for all stakeholders.”
Kunal Koya, Partner At EQT Infrastructure
“We are delighted that EQT has decided to invest in Yorkshire Water. That decision is a strong endorsement of the strategy we are executing, the business plan we have in place, and the quality and experience of our management team. We are making encouraging progress on ‘Doing Right by Yorkshire’ as we continue to strengthen service, resilience and outcomes for customers and the environment, and EQT’s long-term, responsible approach to ownership is well aligned with our priorities. We look forward to working together as we build on that momentum and continue to deliver against our plans.”
Vanda Murray, Chair Of Yorkshire Water And Kelda Holdings
“I warmly welcome this commitment from a leading global infrastructure investor. EQT’s decision to invest in the UK’s regulated water sector underlines the strength of our investment environment and the trust international partners place in the UK economy. It demonstrates that the UK remains one of the world’s most attractive destinations for long-term, sustainable investment.”
Lord Stockwood, Minister For Investment At The UK Department For Business And Trade And HM Treasury
