Real assets investment firm Stonepeak is acquiring lower middle market private credit investment manager Boundary Street Capital for an unspecified sum.
Stonepeak has been investing in private and secondary infrastructure credit since 2018, and the acquisition of Boundary Street further strengthens its credit unit’s digital infrastructure and technology investment capabilities.
Boundary Street currently has more than $700m (€659m) of capital commitments.
Jack Howell, co-president of Stonepeak, said: “We continue to see compelling investment opportunities within the credit space, especially as it relates to digital infrastructure, which has long been one of Stonepeak’s most active sectors.”
Howell added that the acquisition of Boundary Street is a natural next step in the growth of the firm and the evolution of Stonepeak’s credit arm.
Michael Leitner, senior MD at Stonepeak, said: “Boundary Street has assembled an exceptional team who have been investing in digital infrastructure and related technology services businesses since the mid-2000s.
“By combining Stonepeak’s expertise and resources with the Boundary Street team’s complementary experience and skillsets, we will have the ability to broaden our investment aperture and execute more efficiently on the opportunities we’re seeing in AI-driven businesses, including cloud services, enterprise and infrastructure software, and digital services, while bringing a more comprehensive breadth of offerings to our constituent borrowers and limited partners.”
Rashad Kawmy, partner and co-founder at Boundary Street, said: “With the benefits of Stonepeak’s scale, resources, and shared passion for digital infrastructure, we will be even better positioned to continue making sound and thoughtful credit investments and helping grow tomorrow’s greatest technology businesses and digital infrastructure platforms.
“Our focus on both real asset intensive business models as well as those with exceptionally strong and defensible intellectual property foundations will continue in partnership with Stonepeak.”
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