Digital Bridge is planning ahead of time. It has a vision and a strong view on the future and it wants to have the right level of funds to ensure that it has a strong stake in that future.
Digital Bridge is looking at making high conviction long-term debts in digital infrastructure. According to a report by Bloomberg, Digital Bridge is seeking to raise another $1 billion for a new data center fund.
This time the company’s motive is to raise this significant amount for investments with a longer timeframe, at around 20 years maximum. Through these long-term bets, the company aims to receive around 8 to 12 percent returns.
The Firm Has Had a History Of Large Funding Rounds To Invest in Data Centers and Related Assets
It is not the first time the company has aimed to raise this significant amount for a digital fund.
It raised an amount of $8.3 billion previously for its Digital Bridge Partner II funds, the second investment flagship investment fund. The firm has been able to raise an increasing amount as it seems that more investors are convinced that digital infrastructure investments are critical and will be vital over the long term.
Investors have seen the growth of more technology oriented companies that have come onto the public markets. Indeed, much of technology revolves around the movement of data and the ability to harness it well, in such an era, digital infrastructure is quite critical.
Experience in Identifying Infrastructure Investment Candidates
Marc Ganzi, the CEO of Digital Bridge, stated how huge investment could bring immense benefits. He gave an example of a data center operator. Hence, the business can vigorously expand in the correct direction after the correct level of investment.
This May, Digital Bridge took Switch Data Centers Private in a deal of around $11 billion. This represented a substantial markup in Switch’s previous market value, around $7.5 billion. CEO Marc Ganzi further explained that this deal supports Switch so that it can make its own decisions that are not restricted to shareholders’ quarterly reports.
In addition, Marc Ganzi also mentioned other significant resources that can be worked upon. The CEO mentioned that they are noticing the 900-acre land, 1.3 gigawatts of unused energy capacity, and a gradual growth of significant customers, which need a considerable workload.
The CEO, Ganzi, noted that back in 2017, when he signed a deal with Vantage, people gave him a weird yet astonishing look. However, this deal with Vantage is making significant profits after five years. He aims to use the same strategy here too.
Digital Bridge Group To Move Away From Its REIT Structure And Pursue Goals
The firm will seek to operate as a conventional C-Corp instead of moving forward with its legacy REIT status.
In addition, the firm notes that it will continue to do transactions that meets its important strategic goals across the digital infrastructure landscape.
Overview of Goals:
- Building a full stack investor
- Investing in high quality digital business
- Scaling the Digital Investment Management Platform