Argo Infrastructure Partners has increased its interest in TierPoint to become a majority stakeholder in the US data centre and cloud services firm.
The investment means Argo has now committed close to $700m (€644m) to TierPoint since 2020.
Established in 2010, TierPoint operates a large and geographically diverse data centre network in the US. The company, with a footprint including 40 data centrss across 20 markets, provides colocation, interconnection and managed services to over 3,000 customers.
In 2020, TierPoint announced it was receiving $320m worth of preferred equity investment from a consortium of new investors comprising Argo, Wafra and Macquarie Capital Principal Finance. Existing investors – including Cequel III, Ontario Teachers’ Pension Plan, RedBird Capital Partners, The Stephens Group and Thompson Street Capital Partners – also participated in the investment.
In 2022, TierPoint received a $500m investment from an affiliate of Argo, in a deal that made Argo the largest single equity investor in TierPoint.
Following the latest investment, Argo said, combined with a $1.6bn of securitisation issuances over the past 12 months, $2.3bn has been invested in the TierPoint platform since 2020, “driving significant growth in the data centre footprint and positioning the company for continued, long-term value creation”.
Argo said the investment in TierPoint is being made via its third vintage fund.
Brice Soucy, Argo senior director and TierPoint board member, said: “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 capitalise 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.”
Jason Zibarras, founding partner of Argo, said: “TierPoint’s robust contractual revenue profile, coupled with the achievement of an investment-grade profile on the ABS [asset-backed securities] 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 securitisation investor partners.”
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