Fengate Leads Transformative $1.8 Billion Investment to Amplify eStruxture Data Center's Hyperscale Growth
TORONTO and MONTREAL, June 19, 2024 /PRNewswire/ - 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.
SOURCE eStruxture
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