Billionaire Donald Trump donor Paul Singer could make millions from a deal being struck between the government and Thames Water, the UK’s largest water company. Ministers and creditors are locked in negotiations to stave off the company’s collapse, which has accumulated a £17.6bn debt pile since privatisation.
Elliott Investment Management Leads Creditor Consortium
Elliott Investment Management, founded by Singer, is one of the leading creditors in a group that includes Silverpoint Capital, BlackRock, and M&G. The consortium, known as London & Valley Water, is attempting to take over Thames in a multibillion-pound restructuring. Singer, 81, donated $5m to Make America Great Again Inc, Trump’s Super Pac, and tens of millions more in 2024 to support Trump’s allies, including $37m to support the election of Republicans to Congress.
Singer, whom Bloomberg has called “the most feared investor in the world”, once ordered the impounding of an Argentinian navy ship after the country failed to pay its debts. His company is accused of catalysing Argentina’s bond crisis by aggressively pursuing the country’s debts.
Family Affair at Elliott
The Thames bid appears to be a family affair. Sources say Singer’s son Gordon, who runs Elliott’s London office, is the point person. In 2024, Gordon attempted to donate nearly £2,000 to Robert Jenrick’s failed Conservative leadership run; the money was returned as “impermissible” due to an outdated address.
Criticism from Campaign Groups and Politicians
Cat Hobbs of We Own It said: “Trump wants control over NHS drug prices, and his mega donor Singer wants control over our water. ‘Absolutely not’ should be the answer of any government that considers itself patriotic.” Lena Swedlow of Compass added: “These people do not have any interest or business running a water company. They are not utility providers, they are vulture capitalists.” Labour MP Clive Lewis said handing Thames to Singer would be like “throwing red meat to the wolves”.
Aggressive Demands and High-Interest Loans
As is Elliott’s style, creditors demand leniency on fines for four years, potentially worth £1bn, and on environmental measures. They have already loaned Thames £3bn at high interest rates of up to 9.75%, paid through customer bills. Critics argue the deal could allow Thames to continue polluting with impunity.
Political Uncertainty and Regulatory Criticism
The deal is threatened by Labour leadership uncertainty. Andy Burnham, tipped as a future prime minister, wants water back in public control. Ofwat has been criticised for allowing private equity and hedge funds to take over water companies; seven out of 10 privatised companies are now controlled by private equity, and over 70% are foreign-owned.
Government sources say negotiations are intense, with ministers fearing a Liz Truss-style bond market meltdown if the deal fails. A spokesperson for London & Valley Water said: “Experienced turnaround investors have worked constructively to design an ambitious turnaround plan.” A government spokesperson said: “The government will always act in the national interest. The company remains financially stable, but we stand ready for all eventualities.” Elliott declined to comment.
