GI Partners set for October first close on digital infra fund – exclusive

San Francisco-based investment group GI Partners expects to hold an October first close on its first digital infrastructure fund, Infrastructure Investor understands.

According to a source, the GI Data Infrastructure Fund is likely to hold an interim close at between $700 million and $900 million, with the figure dependent on the decisions of two investors.

The fund, which was launched earlier this year, has a target of $1.25 billion. It is thought to be targeting data centres and fibre opportunities in North America and Europe, with Park Hill Group understood to be placing the vehicle.

GI Partners declined to comment on the fundraising.

The firm is traditionally a private equity and real estate manager and closed its fifth private equity fund on $2.7 billion in November 2017, targeting investments in IT infrastructure, healthcare, software and services.

Data centres have been part of the company’s strategy in the past but last year the firm hired Steve Smith to lead its extended push into the sector. Smith had previously worked at global data centre operator Equinix for 11 years, where he was chief executive and president. It also last year hired Mark Prybutok, who had spent a decade as a partner at Alinda Capital Partners. Both have been appointed as managing directors.

The move by GI Partners mirrors the steps taken by real estate investment group Colony Capital, which this year closed a $4.05 billion digital infrastructure fund after teaming up with Digital Bridge to establish Digital Colony. Last week, Colony Capital bought Digital Bridge for $325 million.