Turnspire Capital Partners is preparing to take first-round bids for USG Water Solutions in mid-April, sources told PE Hub. The mid-market PE firm is shopping the municipal water utility service provider to a broad universe of private equity investors as it seeks to maximize returns on its 2023 acquisition.

USG, a former Veolia Environnement business that Turnspire acquired through a 2023 carve-out, has generated significant interest among mid-market PE firms, two sources familiar with the matter said. The company's specialized focus on municipal water services positions it as an attractive asset in the current market environment.

The sale process comes as PE firms continue to seek stable, essential service providers amid market volatility. Water infrastructure has remained resilient through economic cycles, making USG an appealing asset for investors looking for defensive plays in their portfolios. The carve-out strategy has proven successful for Turnspire, which acquired the business with the intention of positioning it for an eventual exit within 12-24 months.