Private equity emphasizes ESG in data centers; Brookfield closes $15 billion fund

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

As private equity becomes more prominent in the global data center industry, some companies have made harnessing the sector’s huge energy appetite a key part of their investment strategy.

451 Research reports that large companies, including KKR & Co. Inc. and Blackstone Inc., are “increasingly targeting” data centers for acquisition. Reducing a data center’s environmental footprint helps a private equity owner achieve its environmental, social, and governance goals. It could also make the center more attractive to a potential buyer when the business decides it’s time to pull out.

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

Blackstone’s emissions reduction program commits the listed alternative asset manager to a 15% reduction in carbon emissions on all new investments where the firm has a say in the energy consumption of the company. holding company, according to the report.

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

FUNDRAISING AND OFFERS

* Several private equity players are eyeing Deutsche Telekom AG’s €20 billion rounds business, 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 majority stake in the company, while a consortium including Brookfield Asset Management Inc. and Cellnex Telecom SA made an offer for part of the tower unit of the German telecommunications operator.

* Apollo Global Management Inc. plans to divest its stake in its asset reconstruction company joint venture with ICICI Bank Ltd., The economic period reported, citing sources. Separately, Apollo has partnered with Australian pension fund Hostplus to form an Asia-Pacific credit strategy with $1.25 billion in assets.

* Brookfield has completed the final institutional closing of its Brookfield Global Transition Fund with commitments of $15 billion.

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

ELSEWHERE IN THE INDUSTRY

* InfraVia Capital Partners will buy a 50% stake in FiberForce, a unit of Polish telecom operator P4 Sp. z oo or Lecture.

* Main Capital Partners BV has taken 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 in additional capital to the non-woody agricultural pulp and molded fibers company.

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

FOCUS ON: INSURANCE

* EQT and Oakley have 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 $200 million strategic investment from Warburg Pincus LLC.

* Home 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.

* Jab Holding Co.’s pet insurance business will buy 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.

Ramon J. Espinoza