Tailwater Capital Announces Equity Commitment to Form Renovo Resources

DALLAS, April 4, 2022 – Tailwater Capital LLC (“Tailwater” or the “Firm”), a private equity firm that takes a full immersion approach to investing in energy and growth infrastructure solutions, today announced an equity commitment in Renovo Resources LLC (“Renovo” or the “Company”), a newly created company that will develop greenfield produced water treatment projects across North America.

Renovo, an asset development company, will provide turnkey produced water treatment solutions to a blue-chip customer base across the energy and industrial sectors. Led by Chief Executive Officer Lnsp ‘Naggs’ Nagghappan and a group of executives with nearly 100 years of combined experience, Renovo anticipates executing on several commercial opportunities to support customers, municipalities and communities to address critical water needs. The Company will operate from its headquarters in Irvine, California.

Energy and industrial companies today are actively seeking improved alternatives for the disposal of water byproducts to not only create an immediate impact but also align with their long-term environmental, social and governance objectives. Renovo’s environmentally sustainable solutions will address this increased demand by treating produced water for beneficial reuse.

“As more regions across the country continue to face water limitations, the market for sustainable produced water treatment solutions is accelerating rapidly, and energy and industrial companies are increasingly seeking effective and environmentally conscious infrastructure solutions,” said Jason Downie, Co-Founder and Managing Partner of Tailwater Capital. “This investment provides Tailwater with the opportunity to partner with an industry-leading team and build a greenfield platform with the potential to quickly scale and have a long-term, positive impact.”

“Tailwater’s unmatched infrastructure business building expertise will support our mission to establish Renovo as the leading turnkey water treatment solutions provider in several critically important regions in the market,” said Mr. Nagghappan. “Our solution generates a reliable new source of fresh water and protects precious resources for municipalities, industries and farming communities as water stress becomes a growing environmental concern across North America.”

“Tailwater has a long track record of supporting companies at the forefront of providing innovative byproduct management and recycling infrastructure solutions,” said David Cecere, Partner at Tailwater Capital. “This partnership represents a unique opportunity to utilize Renovo’s knowledge and first-hand experience in deploying commercial water treatment infrastructure projects, and we are thrilled to expand the number of customers and municipalities with access to commercialized, scalable water treatment solutions.”

The formation of Renovo is an extension of Tailwater’s commitment to partner with businesses supporting the transition to a low-carbon economy. Recent investments include Momentum Technologies, a Dallas-based lithium-ion battery and rare earth permanent magnet recycling company through portfolio company Freestone Holdco; Continuus Materials, a joint venture with WM to develop and operate manufacturing facilities that upcycle municipal solid waste into EverboardTM, a proprietary, high-performance, low-slope roof cover board; and Frontier Carbon Solutions, a leading carbon sequestration services provider.

Kirkland & Ellis LLP advised Tailwater and Akin Gump Strauss Hauer & Feld LLP advised Renovo management on the transaction.

About Renovo Resources

Renovo Resources is a portfolio company of Tailwater Capital focused on developing greenfield produced water treatment solutions for beneficial reuse. Founded in 2022, the company will source, develop and execute water treatment infrastructure projects in the energy and industrial sectors across North America. For more information, please visit www.renovoresources.com.

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