DigitalBridge to acquire AMP Capital’s infra investment business
DigitalBridge Group's (DigitalBridge) affiliate, DigitalBridge Investments is to acquire AMP Capital’s global infrastructure equity investment management business.
Valued at $328 million, the deal is comprised of upfront payments for the management platform, fund sponsor investments, and retained performance fees, in addition to potential contingent payments based on certain future performance criteria.
AMP Capital’s international infrastructure equity platform is made up of four investment funds with assets valued at approximately $5.5 billion, including the $3.4 billion Global Infrastructure Fund II and $1.4 billion Global Infrastructure Fund I.
“This transaction represents a unique opportunity to extend our leadership in digital investment management,” said Marc Ganzi, chief executive officer of DigitalBridge.
“In addition to accelerating and scaling the growth of our platform, we are empowering a team of high-calibre investment professionals who share our commitment to delivering strong long-term returns for investors and have significant experience investing in the value-added mid-market infrastructure segment directly adjacent to our flagship equity business. The Business will deliver immediate financial benefits and growth potential, as we aim to enhance our ability to meet and exceed our near- and medium-term business goals.”
Once completed the deal is set to enhance DigitalBridge’s full stack digital infrastructure capabilities with a business complements the company's flagship value-add digital infrastructure equity franchise.
DigitalBridge will also benefit from an experienced investment team that will operate as a new, distinct business unit within the DigitalBridge investment management platform.
Upon closing, 2022 projected run-rate fee related earnings from the DigitalBridge IM platform is expected to increase approximately 20% over prior guidance. The business is also expected to be immediately accretive to DigitalBridge’s after-tax income per share of Class A common stock.
The transaction is due to close before the end of 2022, subject to customary regulatory approvals.
In related news, earlier this month Netomnia and YouFibre secured £295 million in new funding led by DigitalBridge Investment Management. While just last month, DigitalBridge led a $60 million investment in private 5G company, Celona and announced plans to DigitalBridge to acquire Telenet TowerCo for $820 million.