The exponential growth of worldwide data usage has affected almost every business in the digital space, and finance was not an exception. Investors specializing in private equity (PE) investments recognized the scope of possibilities and benefits of the data center industry.
With the introduction of new advanced technologies (like AI, 5G, cloud solutions for business and gaming, or autonomous vehicles), the demand for data centers has been merely rising. Moreover, digital space transformation and advancement due to the pandemic was another major reason for the explosion of data centers demand.
The most significant PE transaction of 2022 concerning data centers is considered to be a $15 billion deal of CyrusOne being acquired by KKR and Global Infrastructure Partners.
The flourishing of this asset class has attracted attention of other investors, KKR, EQT, Blackstone, and The Carlyle Group being some of them, joined by digital sector specialists like Digital Transformation Capital Partners and DigitalBridge.
The latter, a US-based PE company focused on digital infrastructure solutions, is the top among the most active PE investors in the data centers sector, with EQT based in Sweden being a close runner-up. The top tier of the list also includes American firms like GTCR and Berkshire Partners.
The research made by Pitchbook, shows that in 2022 the PE industry has performed 92 transactions totaling more than $40 billion. That is a consistent growth over 2020 and 2021.
The top list of the most influential PE investors in data centers for the last ten years by the Pitchbook Data company is as follows
DigitalBridge Group, the US-based firm that generally invests in data centers, edge infrastructure, fiber, and small cells, is considered to be the most active company concerning PE investments in data centers. In May, 2022he company acquired Switch Inc., a global data center operator, for $11 billion. In total, DigitalBridge has assets under management worth $48 billion.
EQT is a Swedish company that invests in various sectors. This investor backed several data center firms, including Global Data Center and EdgeConneX. At the end of the summer 2022, EQT was spotted among bidders for Global Switch alongside PAG and KKR. It also has a history of noteworthy exits that include selling Coromatic to E.ON.
GTCR is a Chicago-based PE company focusing on many different sectors (financial services, healthcare, media and telecommunications, technology, etc.). One of its most noteworthy investment cases includes Park Place Technologies. Two years ago, the company acquired Curvature, a data center and network equipment provider, and in 2022 they acquired Riverstone Technology, a maintenance and support provider. GTCR has made 14 PE investments in total.
Berkshire Partners is a buyout company that mainly operates in the field of middle markets and has an experience of 13 PE investments. They bought a minority stake in MedOne (an Israel-based data center operator). Berkshire Partners reported their exit from Teraco Data Environments, an African cloud-, carrier, and vendor-neutral data center provider in early 2022.
Charlesbank Capital Partners is a US PE company specializing in growth investments in various sectors, like healthcare and business services. Occasionally the company makes adventurous investments in the technology sector. In 2019 Charlesbank acquired Park Place Technologies, a global data center company.
M/C Partners is a US investment company based in Boston and focused on technology services and digital infrastructure. The firm primarily focuses on businesses of small and medium sizes and is known for backing companies, including Involta, which specializes in hybrid IT and cloud solutions. In December 2021, the company sold Involta to The Carlyle Group.
RedBird Capital Partners is a US growth equity company based in New York. It has 11 PE investments, and the company’s data center portfolio includes such companies as Tierpoint and Compass Datacenters.
Waterland Private Equity Investments is a Dutch company that focuses on digitization, leisure, luxury, and healthcare investments. The firm is based in Bussum, Netherlands, and one of the most notable investments in the company’s experience is Netrics, a data center operator.
Thompson Street Capital Partners is a private equity company that specializes in founder-led, middle-market businesses. Xand and Tierpoint are among the most notable investments of the company.
InfraVia Capital Partners is a technology and infrastructure-focused PE investment company. Their history with data center companies includes Green, Etix Everywhere, and NGD. The latter two were sold to Vantage Data Centers (a data center operator).
The Carlyle Group is an American investment company mainly specializing in growth equity and buyouts. In summer 2022, the company completed the acquisition of a 24% stake in Nxtra Data, and early in 2022, they acquired Involta, a company that works with hybrid IT, data center services, and cloud computing.
Audax Group – this Boston-based private equity firm backed several data center companies, Subzero Engineering and Maicom being some of them.
Newspring Capital is a private equity and growth capital company that focuses on a scope of different sectors, which include business intelligence, enterprise, and infrastructure solutions. Raritan is a noteworthy company’s exit alongside Atlantic Metro.
Cequel III is an investment company with a total of 9 PE investments. The company took part in the acquisition of Colo4 and several other data center assets.
H.I.G. Capital is an American alternative investment company. The company helped VIRTUS Data Centres company with debt financing.
With the introduction of new advanced technologies (like AI, 5G, cloud solutions for business and gaming, or autonomous vehicles), the demand for data centers has been merely rising. Moreover, digital space transformation and advancement due to the pandemic was another major reason for the explosion of data centers demand.
The most significant PE transaction of 2022 concerning data centers is considered to be a $15 billion deal of CyrusOne being acquired by KKR and Global Infrastructure Partners.
The flourishing of this asset class has attracted attention of other investors, KKR, EQT, Blackstone, and The Carlyle Group being some of them, joined by digital sector specialists like Digital Transformation Capital Partners and DigitalBridge.
The latter, a US-based PE company focused on digital infrastructure solutions, is the top among the most active PE investors in the data centers sector, with EQT based in Sweden being a close runner-up. The top tier of the list also includes American firms like GTCR and Berkshire Partners.
The research made by Pitchbook, shows that in 2022 the PE industry has performed 92 transactions totaling more than $40 billion. That is a consistent growth over 2020 and 2021.
The top list of the most influential PE investors in data centers for the last ten years by the Pitchbook Data company is as follows
DigitalBridge Group, the US-based firm that generally invests in data centers, edge infrastructure, fiber, and small cells, is considered to be the most active company concerning PE investments in data centers. In May, 2022he company acquired Switch Inc., a global data center operator, for $11 billion. In total, DigitalBridge has assets under management worth $48 billion.
EQT is a Swedish company that invests in various sectors. This investor backed several data center firms, including Global Data Center and EdgeConneX. At the end of the summer 2022, EQT was spotted among bidders for Global Switch alongside PAG and KKR. It also has a history of noteworthy exits that include selling Coromatic to E.ON.
GTCR is a Chicago-based PE company focusing on many different sectors (financial services, healthcare, media and telecommunications, technology, etc.). One of its most noteworthy investment cases includes Park Place Technologies. Two years ago, the company acquired Curvature, a data center and network equipment provider, and in 2022 they acquired Riverstone Technology, a maintenance and support provider. GTCR has made 14 PE investments in total.
Berkshire Partners is a buyout company that mainly operates in the field of middle markets and has an experience of 13 PE investments. They bought a minority stake in MedOne (an Israel-based data center operator). Berkshire Partners reported their exit from Teraco Data Environments, an African cloud-, carrier, and vendor-neutral data center provider in early 2022.
Charlesbank Capital Partners is a US PE company specializing in growth investments in various sectors, like healthcare and business services. Occasionally the company makes adventurous investments in the technology sector. In 2019 Charlesbank acquired Park Place Technologies, a global data center company.
M/C Partners is a US investment company based in Boston and focused on technology services and digital infrastructure. The firm primarily focuses on businesses of small and medium sizes and is known for backing companies, including Involta, which specializes in hybrid IT and cloud solutions. In December 2021, the company sold Involta to The Carlyle Group.
RedBird Capital Partners is a US growth equity company based in New York. It has 11 PE investments, and the company’s data center portfolio includes such companies as Tierpoint and Compass Datacenters.
Waterland Private Equity Investments is a Dutch company that focuses on digitization, leisure, luxury, and healthcare investments. The firm is based in Bussum, Netherlands, and one of the most notable investments in the company’s experience is Netrics, a data center operator.
Thompson Street Capital Partners is a private equity company that specializes in founder-led, middle-market businesses. Xand and Tierpoint are among the most notable investments of the company.
InfraVia Capital Partners is a technology and infrastructure-focused PE investment company. Their history with data center companies includes Green, Etix Everywhere, and NGD. The latter two were sold to Vantage Data Centers (a data center operator).
The Carlyle Group is an American investment company mainly specializing in growth equity and buyouts. In summer 2022, the company completed the acquisition of a 24% stake in Nxtra Data, and early in 2022, they acquired Involta, a company that works with hybrid IT, data center services, and cloud computing.
Audax Group – this Boston-based private equity firm backed several data center companies, Subzero Engineering and Maicom being some of them.
Newspring Capital is a private equity and growth capital company that focuses on a scope of different sectors, which include business intelligence, enterprise, and infrastructure solutions. Raritan is a noteworthy company’s exit alongside Atlantic Metro.
Cequel III is an investment company with a total of 9 PE investments. The company took part in the acquisition of Colo4 and several other data center assets.
H.I.G. Capital is an American alternative investment company. The company helped VIRTUS Data Centres company with debt financing.