Among the strongest contenders are KKR, Hong Kong-based infrastructure investor CKI, hedge fund Covalis Capital, and London-based Castle Water. CKI has reportedly expressed the most serious commitment, proposing a '7bn capital injection. US infrastructure investor Stonepeak, which manages over $70bn in assets, and FitzWalter Capital, known for distressed debt investments, have also submitted proposals but are seen as less likely to proceed with firm bids. The process remains fluid, with all bids currently non-binding. FitzWalter's proposal suggests a minority equity investment in partnership with other investors rather than a full takeover. The firm also holds lower-ranking Thames Water bonds that could suffer heavy losses under the utility's '3bn loan deal with senior creditors. Covalis, another bidder, has been openly critical of how Thames Water and its adviser, Rothschild & Co, have handled the equity raise. Beyond private equity interest, Thames Water's senior bondholders,...
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