Home Private Equity Private equity brings ESG focus to data centers; Brookfield closes $15B fund

Private equity brings ESG focus to data centers; Brookfield closes $15B fund


S&P Global Market Intelligence offers our top picks of global private equity news stories and more published throughout the week.

As private equity becomes a larger presence in the global data center industry, some firms have made taming the sector’s huge energy appetite a key piece of their investment strategy.

451 Research reports large firms, including KKR & Co. Inc. and Blackstone Inc., are “increasingly targeting” data centers for acquisition. Shrinking a data center’s environmental footprint helps a private equity owner meet its stated environmental, social and governance goals. It could also make the center more appealing to a potential buyer when the firm decides it is time to exit.

Several recent examples of the trend include Blackstone’s 2021 acquisition of data center operator QTS Realty Trust Inc. Within months of the $10 billion deal, QTS announced a commitment to cutting its greenhouse gas emissions in half within a decade.

Blackstone’s Emissions Reduction Program commits the publicly traded alternative asset manager to a 15% reduction in carbon emissions across all new investments where the firm has a say in the portfolio company’s energy usage, the report said.

Read more about how private equity’s ESG commitments could influence the data center industry.


* Several private equity players are eyeing the €20 billion towers business of Deutsche Telekom AG, Bloomberg News reported, citing unnamed sources. According to the report, KKR & Co. Inc., Global Infrastructure Management LLC and Stonepeak Partners LP jointly made an offer for a controlling stake in the business, while a consortium comprising Brookfield Asset Management Inc. and Cellnex Telecom SA bid for a portion of the German telco’s towers unit.

* Apollo Global Management Inc. is planning to divest its interest in its asset reconstruction company joint venture with ICICI Bank Ltd., The Economic Times reported, citing sources. Separately, Apollo partnered with Australian superannuation fund Hostplus to form an Asia-Pacific credit strategy with $1.25 billion in assets.

* Brookfield held a final institutional close for its Brookfield Global Transition Fund with $15 billion in commitments.

* TPG Capital LP agreed to take Convey Health Solutions Holdings Inc. private for $10.50 per share in cash, valuing the company at approximately $1.1 billion.


* InfraVia Capital Partners will purchase a 50% stake in FiberForce, a unit of Polish telco operator P4 Sp. z o.o., or Play.

* Main Capital Partners BV took a majority stake in Dutch enterprise architecture software company BiZZdesign BV.

* Ara Partners Group LLC purchased Genera Energy Inc. and committed up to $200 million of additional capital to the nonwood agricultural pulp and molded fiber company.

* Astorg Partners bought a majority stake in Avania BV, a medical technology contract research organization.


* EQT and Oakley agreed to sell Facile.it SpA, an Italian online insurance price comparison platform, to Silver Lake.

* Tiptree Inc. unit The Fortegra Group Inc. received a strategic investment of $200 million from Warburg Pincus LLC.

* Homeowners insurance provider Openly Inc. raised $75 million in a series C funding round, which included participation from Advance Venture Partners LLC, Clocktower Technology Ventures and Gradient Ventures.

* The pet insurance business of Jab Holding Co. will purchase Fairfax Financial Holdings Ltd.’s stakes in Crum & Forster Holdings Corp. and Pethealth Inc., including their global operations.

451 Research is part of S&P Global Market Intelligence.

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