Stonepeak raises $3bn continuation fund to recapitalise Cologix

The capital collected for the North American data centre platform puts it among the largest single-asset continuation funds raised.

Stonepeak has secured around $3 billion for a continuation fund to house Cologix, a data centre platform previously owned by its second flagship fund, Infrastructure Investor understands.

Stonepeak confirmed last week it had agreed to recapitalise Cologix with a combination of commitments from existing Stonepeak Infrastructure Fund II investors and “a number of new third-party investors”, it said in a statement.

The firm did not specify how much has been reinvested in Cologix, although it is believed Stonepeak has raised about $3 billion for the continuation vehicle, as was first reported by Infrastructure Investor in October. That would place it slightly behind the £3 billion ($4.1 billion; €3.6 billion) raised by Global Infrastructure Partners in 2019 for a continuation fund to hold its 49 percent stake in London’s Gatwick Airport, the largest single-asset secondaries deal, as per a ranking last year by affiliate title Secondaries Investor.

Sources told Infrastructure Investor in October that Stonepeak was undertaking the process as the growth prospects for Cologix are far higher than originally envisaged when the New York-based firm first invested in Cologix in 2017.  At the time, according to a Stonepeak statement, Cologix owned 24 data centres across nine markets in the US and Canada. It now owns 40 interconnection and hyperscale data centres in 11 North American markets and more than 600 interconnection networks.

Stonepeak’s Fund II committed $828 million to Cologix in March 2017, which was reduced to $588 million in May 2017 following an LP co-investment sell down, according to a Stonepeak presentation to the Rhode Island State Investment Commission in September 2017.

In September 2019, Abu Dhabi’s sovereign wealth fund Mubadala Investment Company agreed to invest up to $500 million in Cologix. Mubadala last week announced its exit from the group as part of the recapitalisation.