With high global demand for data storage and the processing of vast amounts of digital information, Fengate Asset Management and eStruxture Data Centers announced the completion of a C$1.8 billion deal.
This record-breaking investment is the single biggest to ever be made in the Canadian data center sector and marks a major milestone in eStruxture’s strategic growth. This funding will enable the expansion of eStruxture’s portfolio of 15 state-of-the-art facilities nationwide to meet the demand for data center capacity.
Fengate, which is a leading North American alternative investment manager focused on infrastructure, private equity, and real estate strategies, significantly increased its equity stake in eStruxture. And the firm’s investment in eStruxture includes newly-raised capital from a group of institutional secondary investors co-led by Partners Group, a leading global private markets firm, acting on behalf of its clients, and Pantheon, a leading specialist global private markets and secondary investor.
Fengate is investing on behalf of Fengate Infrastructure Fund III, Fengate Infrastructure Fund IV and their affiliated entities, including an investment by LiUNA’s Pension Fund of Central and Eastern Canada.
Jonathan Wener and the Wener Family Office along with Todd Coleman (Founder, President, and CEO of eStruxture) and the accompanying management team, will also reinvest a significant portion of their holdings in eStruxture. This reflects their strong confidence in its strategic vision and growth trajectory.
With major technology players expand cloud regions across Canada, and AI and Machine Learning become integral to business operations, eStruxture is positioned to meet these needs with scalable and sustainable data center solutions. And this strategic investment will accelerate eStruxture’s hyperscale growth, providing a launch pad for transformative expansion and solidifying its leadership in Canada’s digital infrastructure market.
DH Capital (a division of Citizens and Scotiabank) served as eStruxture’s financial advisors; Davies Ward Phillips & Vineberg as legal advisor; and KPMG as tax advisor. And Campbell Lutyens served as Fengate’s exclusive financial advisor; Kirkland & Ellis and Stikeman Elliot as legal advisors; and Leo Berwick as tax advisor.
KEY QUOTES:
“For years, Fengate has had a front-row seat to the meteoric success of eStruxture, and that intimate perspective gives us full confidence to continue our relationship through this next exciting growth phase.”
- Lou Serafini Jr., President and Chief Executive Officer at Fengate
“This partnership with Fengate marks a transformative moment for eStruxture. It not only reflects our shared commitment to advancing Canada’s digital landscape but also positions us to lead in delivering highly scalable and sustainable digital infrastructure solutions that will empower businesses across Canada and beyond.”
- Todd Coleman
“eStruxture is paving the way for Canada’s digital infrastructure sector. Digital is a sector focus for our infrastructure business, and increasing our investment in eStruxture is an exciting and significant step toward realizing our digital infrastructure strategy.”
- George Theodoropoulos, Managing Partner at Fengate
“The eStruxture team is truly best-in-class. Eight years ago, eStruxture was nothing but an idea. Today, we are Canada’s leading data center platform. Notwithstanding all we have accomplished, we believe the best is yet to come.”
- Jonathan Wener
