Tiger Infra sells fibre company to Stonepeak-backed ExteNet

The US fund manager has offloaded its majority stake in Hudson Fiber Network from its inaugural infrastructure fund.

Mid-market US fund manager Tiger Infrastructure Partners has sold its majority stake in fibre-optic company Hudson Fiber Network to a telecommunications company backed by Stonepeak Infrastructure Partners and Digital Bridge Holdings.

Tiger agreed to sell HFN to ExteNet Systems for an undisclosed amount, exiting one of the firm’s first investments made through its inaugural, $113.4 million infrastructure fund, Tiger Infrastructure Partners I. The deal is expected to close in the second half of this year, according to a statement.

Tiger did not respond to a request for comment.

“Tiger’s successful partnership with HFN was a good example of our investment strategy: we provided growth capital and the resources of our operating and financial teams to help a young company with superb management build critical infrastructure and scale,” Tiger chief executive Emil Henry said in a statement. “The result was substantial value creation.”

HFN is a New Jersey-based data transport provider offering high-bandwidth, low-latency fibre network connections. The company’s new owner, Illinois-based ExteNet, received a $1.4 billion recapitalisation when Stonepeak and Digital Bridge purchased it in 2015.

For Tiger, the deal to exit HFN comes as the firm nears the end of fundraising for its sophomore vehicle. Infrastructure Investor reported in January that Tiger had raised $176.5 million, according to regulatory documents. No target was listed on the document for Tiger Infrastructure Partners II, which began raising in January 2017.

Tiger has been investing from its second fund since at least last September, when it purchased its first natural gas-fired generation plant – the 500MW Danskammer Station in New York. The firm has also recently led a £50 million ($66.3 million; €56.3 million) investment in UK-based energy storage firm Battery Energy Storage Solutions.