Underwriting Standards

Every opportunity evaluated by Aquivest is measured against a consistent set of underwriting standards. Opportunities that do not meet these thresholds are declined regardless of headline scale.

• Legal quality: Perfected right with documented priority date, clean decree chain, and active beneficial use.
• Hydrologic quality: Aquifer or surface source with defensible long-run yield under drought-weighted assumptions.
• Regulatory posture: Clean compliance record; defensible change-of-use profile; no pattern of forfeiture or curtailment risk.
• Community standing: No unresolved tribal, district, or municipal disputes that would compromise long-horizon ownership.
• Environmental liability: Identified ecosystem-flow obligations and aquifer-recovery commitments priced into purchase price.
• Return threshold: Real, unlevered base-case returns that exceed Aquivest hurdle across a defined price-of-water band.

Portfolio Construction Principles

• Basin diversification across North American, Australian, and South American water regimes.
• Priority-date diversification within each basin; senior and junior positions sized intentionally.
• Vertical balance across rights, infrastructure, agricultural land, and technology.
• Counterparty diversification across municipal, industrial, agricultural, and ecological offtakers.
• Concentration limits at the single-counterparty, single-basin, and single-vertical level.