Stonepeak, a leading alternative investment firm specializing in infrastructure and real assets announced the successful closing of its previously announced equity recapitalization of Cologix, the largest private interconnection and hyperscale edge platform in North America. At $3.0 billion in equity value, the transaction represents the largest single asset continuation vehicle raised in digital infrastructure to date. Cologix also completed a $1.65 billion asset-backed securitization earlier this year to support continued growth.
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The recapitalization was effectuated as a sale of Cologix by Stonepeak Infrastructure Fund II LP and co-investors (Fund II) to Stonepeak-managed vehicles comprising a combination of existing Fund II investors who have chosen to reinvest in the business in partnership with a number of new third-party investors.
Cyrus Gentry, Managing Director at Stonepeak, said, “We are excited to extend and deepen our partnership with the Cologix team through this transaction and look forward to supporting Bill and team as they continue to build out Cologix’s leading North American interconnection and hyperscale edge platform in the years ahead.”
“With this transaction, we are accelerating our investments to match the growing demand from cloud services and network providers as well as digital enterprises,” added Cologix Chairman and CEO Bill Fathers. “We will build and acquire ScalelogixSM hyperscale edge data centers in current and new markets to complement and expand our network dense digital edge business.”
Cologix is North America’s leading network-neutral interconnection and hyperscale edge data center company with a carrier-dense ecosystem of more than 600 networks, 300+ cloud providers and 29 onramps across its platform. The company provides colocation and connectivity solutions to more than 1,600 customers through its operations that span 40+ digital edge and Scalelogix hyperscale edge data centers in 11 North American markets. Cologix maintains a strong focus on environmental, social and governance efforts across its business and to date has undertaken various sustainability initiatives, including the use of hydropower, optimizing water usage and installing the most efficient uninterruptible power supplies in the industry.
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Fund II acquired a majority stake in Cologix in March of 2017 and subsequently partnered with Mubadala Investment Company (who have exited their position as part of this recapitalization) for an incremental growth capital investment in January 2020. Since 2017, Cologix has invested $1 billion of incremental capital in building out the company’s footprint through various organic and inorganic initiatives.
Goldman Sachs & Co. LLC acted as financial advisor to Stonepeak. RBC Capital Markets, LLC acted as financial advisor to Fund II. Simpson Thacher & Bartlett LLP acted as legal counsel to Stonepeak.
Stonepeak is a leading alternative investment firm specializing in infrastructure and real assets with approximately $46 billion of assets under management. Through its investment in defensive, hard-asset businesses globally, Stonepeak aims to create value for its investors and portfolio companies, and to have a positive impact on the communities in which it operates. Stonepeak sponsors investment vehicles focused on private equity and credit. The firm provides capital, operational support, and committed partnerships to sustainably grow investments in its target sectors, which include communications, water, energy transition, power and renewable energy, and transport and logistics. Stonepeak is headquartered in New York with offices in Austin, Hong Kong, Houston, London and Sydney.
Cologix provides carrier and cloud neutral hyperscale edge data centers and services across North America. Cologix is the interconnection hub for cloud service providers, carriers and a rich ecosystem of partners who want to deploy applications at the very edge across Canada and the U.S. With a growing portfolio of next generation facilities that meet the unique requirements for hyperscale growth with deep connectivity, Cologix offers massive scale and tailor-made data center solutions to accelerate customers’ digital transformation.
Mubadala Investment Company is a sovereign investor managing a global portfolio, aimed at generating sustainable financial returns for the Government of Abu Dhabi.
Mubadala’s $243.4 billion (AED 894 billion) portfolio spans six continents with interests in multiple sectors and asset classes. We leverage our deep sectoral expertise and long-standing partnerships to drive sustainable growth and profit, while supporting the continued diversification and global integration of the economy of the United Arab Emirates.
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