Cumulative investment totals $2.3 billion since 2020
Argo Infrastructure Partners, LP (“Argo”) today announced that it has increased its ownership stake to represent a majority interest in TierPoint, underscoring the firm’s confidence in the platform’s exceptional growth trajectory. Argo has now invested ~$700 million since 2020 in TierPoint, the flagship digital infrastructure investment in Argo’s portfolio. Combined with the $1.6 billion of securitization issuances over the past 12 months, $2.3 billion has been invested in the TierPoint platform since 2020 driving significant growth in the data center footprint and positioning the company for continued, long-term value creation.
TierPoint, founded in 2010, operates one of the largest and most geographically diversified U.S. enterprise-class data center footprints totaling 40 data centers in 20 markets, connected by a coast-to-coast fiber network providing critical colocation, interconnection and managed services to over 3,000 customers. TierPoint’s issuance of $1.6 billion in asset-backed securities (ABS) since 2023 are all rated investment grade and were issued under the company’s Green Finance Framework, demonstrating its ongoing commitment to operating in accordance with environmental and sustainability principles.
“TierPoint is one of the highest quality enterprise-class data center platforms and has an unparalleled track record in the industry for reliable operations and energy efficiency. This has positioned us to capitalize on the unprecedented demand for both enterprise colocation and high-density colocation services, which are critical infrastructure for compute-intensive workloads, including artificial intelligence and machine learning applications. We have confidence this demand will translate into a significant growth of the portfolio over the long-term and will cement TierPoint as a go-to provider in this high-growth sector,” said Brice Soucy, Argo Senior Director and TierPoint Board member.
Argo’s investment in TierPoint forms part of its Argo Series 3 funds – TierPoint is the largest of the six investments made by the 3rd vintage fund and is one of the largest assets of Argo’s 18 portfolio companies. The significant investment demonstrates the firm’s strong conviction in TierPoint’s potential to create value for Argo’s investors over the long-term. The investment also adds to Argo’s track record of sustainable investing and one of its key investment strategies to invest in digital infrastructure assets that support the digitalization of the economy.
“We are pleased to expand our investment in TierPoint, reaffirming our commitment as a dedicated, long-term investor in the exceptional platform. TierPoint’s robust contractual revenue profile, coupled with the achievement of an investment-grade profile on the ABS and its environmental stewardship, fully aligns with Argo’s long-term sustainable infrastructure thesis. We look forward to continuing to support the long-term growth of our collective platform in partnership with our securitization investor partners,” said Jason Zibarras, Founding Partner of Argo.
Argo Infrastructure Partners:
Argo Infrastructure Partners LP is an independent fund manager with a long-term approach to infrastructure investing. Argo invests in high-quality infrastructure businesses and assets that provide essential services to their communities over their long operational lives, including investments in utilities, renewable energy, digital infrastructure, and other long duration infrastructure assets. Argo’s investment philosophy couples sound investment return with responsible and sustainable investing. As of July 2024, Argo manages over $6 billion in assets on behalf of its investor partners. For more information, visit www.argoip.com.
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