TORONTO and MONTREAL, June 19,
2024 /CNW/ - Amid soaring global demand for data
storage and the processing of vast amounts of digital information,
Fengate Asset Management ("Fengate") and eStruxture Data Centers
("eStruxture") are pleased to announce the completion of a
groundbreaking $1.8 billion CAD
transaction, setting a new standard for innovation and growth in
the Canadian technology sector.
The record-breaking investment is the single biggest to ever be
made in the Canadian data center sector and marks a pivotal moment
in eStruxture's strategic growth. The investment will enable the
expansion of eStruxture's portfolio of 15 state-of-the-art
facilities nationwide to meet the demand for data center
capacity.
Fengate, a leading North American alternative investment manager
focused on infrastructure, private equity, and real estate
strategies, significantly increased its equity stake in eStruxture
with the sector-shaping deal, building on the longstanding business
partnership. The firm's investment in eStruxture includes
newly-raised capital from a group of institutional secondary
investors co-led by Partners Group, a leading global private
markets firm, acting on behalf of its clients, and Pantheon, a
leading specialist global private markets and secondary investor.
Fengate is investing on behalf of Fengate Infrastructure Fund III,
Fengate Infrastructure Fund IV and their affiliated entities,
including an investment by LiUNA's Pension Fund of Central and
Eastern Canada.
Jonathan Wener and the Wener
Family Office, along with Todd
Coleman, Founder, President, and CEO of eStruxture, and the
accompanying management team, will also reinvest a significant
portion of their holdings in eStruxture. This reflects their strong
confidence in its strategic vision and growth trajectory.
"For years, Fengate has had a front-row seat to the meteoric
success of eStruxture, and that intimate perspective gives us full
confidence to continue our relationship through this next exciting
growth phase," said Lou Serafini
Jr., President and Chief Executive Officer at Fengate.
Todd Coleman commented on the
partnership's significance.
"This partnership with Fengate marks a transformative
moment for eStruxture. It not only reflects our shared commitment
to advancing Canada's digital
landscape but also positions us to lead in delivering highly
scalable and sustainable digital infrastructure solutions that will
empower businesses across Canada
and beyond."
"eStruxture is paving the way for Canada's digital infrastructure sector," said
George Theodoropoulos, Managing
Partner at Fengate. "Digital is a sector focus for our
infrastructure business, and increasing our investment in
eStruxture is an exciting and significant step toward realizing our
digital infrastructure strategy."
"The eStruxture team is truly best-in-class. Eight years ago,
eStruxture was nothing but an idea. Today, we are Canada's leading data center platform.
Notwithstanding all we have accomplished, we believe the best is
yet to come," said Jonathan
Wener.
As major technology players expand cloud regions across
Canada, and AI and Machine
Learning become integral to business operations, eStruxture is
uniquely positioned to meet these needs with scalable and
sustainable data center solutions. This strategic investment will
accelerate eStruxture's hyperscale growth, providing a launch pad
for transformative expansion and solidifying its leadership in
Canada's digital infrastructure
market.
DH Capital, a division of Citizens and Scotiabank served as
eStruxture's financial advisors; Davies Ward Phillips &
Vineberg as legal advisor; and KPMG as tax advisor. Campbell
Lutyens served as Fengate's exclusive financial advisor; Kirkland
& Ellis and Stikeman Elliot as legal advisors; and Leo Berwick as tax advisor.
About Fengate
Fengate is a leading alternative investment manager focused on
infrastructure, private equity and real estate strategies, with
$8 billion of capital commitments
under management. With offices in Canada and the
United States, Fengate is one of the most active real asset
investors in North America. The
firm has been investing in infrastructure since 2006, with a focus
on mid-market greenfield and brownfield assets in the
transportation, social, energy transition and digital sectors.
Fengate leverages its long-standing relationships with
design-builders, operators and developers to source, develop and
manage infrastructure investments across North America on behalf of its clients. The
firm has a proven track record and trusted reputation as an
investment and development partner across the sectors it operates
in, and an infrastructure project portfolio of more than 45 assets
valued at over $20 billion. Fengate
is committed to responsible investment and to bringing transparency
and accountability to monitoring asset level environmental, social
and governance factors. Learn more at www.fengate.com.
About eStruxture Data Centers
eStruxture is the largest Canadian data center provider with
locations in Montreal,
Toronto, Calgary, and Vancouver. Our solutions are designed to give
you more: more locations, more capacity, more connections that
enable you to run modern, demanding enterprise applications, and
offer your business the control to rapidly scale in response to
unpredictable changes in business processes.
Headquartered in Montreal,
eStruxture provides access to an ecosystem of almost 1,000
customers that trust and depend on our infrastructure and customer
support, including carriers, cloud providers, media content,
financial services, and enterprise customers. eStruxture offers
colocation, bandwidth, security and support services to customers
across Canada in its carrier and
cloud-neutral facilities.
For more information, visit www.estruxture.com, and follow us on
Twitter and LinkedIn.
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SOURCE eStruxture