Argo Infrastructure Partners Announces Majority Investment in TierPoint to Further Support Growth of Data Center Portfolio
July 11 2024 - 10:04AM
Business Wire
Cumulative investment totals $2.3 billion since 2020
Argo Infrastructure Partners, LP (“Argo”) today announced that
it has increased its ownership stake to represent a majority
interest in TierPoint, underscoring the firm’s confidence in the
platform’s exceptional growth trajectory. Argo has now invested
~$700 million since 2020 in TierPoint, the flagship digital
infrastructure investment in Argo’s portfolio. Combined with the
$1.6 billion of securitization issuances over the past 12 months,
$2.3 billion has been invested in the TierPoint platform since 2020
driving significant growth in the data center footprint and
positioning the company for continued, long-term value
creation.
TierPoint, founded in 2010, operates one of the largest and most
geographically diversified U.S. enterprise-class data center
footprints totaling 40 data centers in 20 markets, connected by a
coast-to-coast fiber network providing critical colocation,
interconnection and managed services to over 3,000 customers.
TierPoint’s issuance of $1.6 billion in asset-backed securities
(ABS) since 2023 are all rated investment grade and were issued
under the company’s Green Finance Framework, demonstrating its
ongoing commitment to operating in accordance with environmental
and sustainability principles.
“TierPoint is one of the highest quality enterprise-class data
center platforms and has an unparalleled track record in the
industry for reliable operations and energy efficiency. This has
positioned us to capitalize on the unprecedented demand for both
enterprise colocation and high-density colocation services, which
are critical infrastructure for compute-intensive workloads,
including artificial intelligence and machine learning
applications. We have confidence this demand will translate into a
significant growth of the portfolio over the long-term and will
cement TierPoint as a go-to provider in this high-growth sector,”
said Brice Soucy, Argo Senior Director and TierPoint Board
member.
Argo’s investment in TierPoint forms part of its Argo Series 3
funds – TierPoint is the largest of the six investments made by the
3rd vintage fund and is one of the largest assets of Argo’s 18
portfolio companies. The significant investment demonstrates the
firm's strong conviction in TierPoint's potential to create value
for Argo’s investors over the long-term. The investment also adds
to Argo’s track record of sustainable investing and one of its key
investment strategies to invest in digital infrastructure assets
that support the digitalization of the economy.
“We are pleased to expand our investment in TierPoint,
reaffirming our commitment as a dedicated, long-term investor in
the exceptional platform. TierPoint’s robust contractual revenue
profile, coupled with the achievement of an investment-grade
profile on the ABS and its environmental stewardship, fully aligns
with Argo’s long-term sustainable infrastructure thesis. We look
forward to continuing to support the long-term growth of our
collective platform in partnership with our securitization investor
partners,” said Jason Zibarras, Founding Partner of Argo.
Argo Infrastructure Partners:
Argo Infrastructure Partners LP is an independent fund manager
with a long-term approach to infrastructure investing. Argo invests
in high-quality infrastructure businesses and assets that provide
essential services to their communities over their long operational
lives, including investments in utilities, renewable energy,
digital infrastructure, and other long duration infrastructure
assets. Argo’s investment philosophy couples sound investment
return with responsible and sustainable investing. As of July 2024,
Argo manages over $6 billion in assets on behalf of its investor
partners. For more information, visit www.argoip.com.
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Argo Infrastructure Partners info@ArgoIP.com Media Contact Ira
Gorsky Ira.gorsky@edelmansmithfield.com