Stonepeak, a leading alternative investment firm specializing in infrastructure and real assets, announced that it has agreed to acquire Boundary Street Capital, LP – which is a leading specialist private credit investment manager focused on the digital infrastructure, enterprise infrastructure software, and technology services sectors in the lower middle market. And Boundary Street currently has $700+ million of capital commitments.
Stonepeak’s credit business has been actively investing in private and secondary infrastructure credit since 2018. The firm’s team of credit professionals takes a disciplined approach to investing across the capital structure as it looks to create a diverse portfolio in the infrastructure and real assets sectors, such as digital infrastructure, energy and energy transition, and transport and logistics.
This deal enhances Stonepeak Credit’s digital infrastructure investing capabilities and supports its expansion into complementary sub-sectors, such as enterprise and infrastructure software, cloud and managed services, technology-enabled services, advanced mobility, and earlier-stage digital infrastructure platforms.
Through the addition of Boundary Street’s platform and team of experienced professionals who have deep credit and technology sector expertise, Stonepeak will seek to provide a more comprehensive set of credit and credit-linked capital solutions to businesses taking advantage of the strong tailwinds in the digital infrastructure and technology services sectors across multiple stages of the growth lifecycle.
The deal is expected to close in the fourth quarter of 2024 subject to customary and regulatory approvals. And the terms of the transaction were not disclosed.
Paul, Weiss, Rifkind, Wharton & Garrison and Simpson Thacher & Bartlett worked as legal counsel to Stonepeak. Hogan Lovells worked as legal counsel to Boundary Street.
KEY QUOTES:
“We continue to see compelling investment opportunities within the credit space, especially as it relates to digital infrastructure, which has long been one of Stonepeak’s most active sectors. Over the last several years, we’ve made thoughtful investments to further build out our credit platform, including the addition of Michael Leitner as a Senior Managing Director in 2023. As we have built out the broader credit organization and successfully deployed capital across the capital stack into world-class infrastructure portfolio companies, the team has continued to excel. The acquisition of Boundary Street is a natural next step in the growth of the firm and the evolution of Stonepeak Credit. We are excited for what this transaction means for our limited partners and look forward to having the Boundary Street team onboard.”
– Jack Howell, Co-President of Stonepeak
“Boundary Street has assembled an exceptional team who have been investing in digital infrastructure and related technology services businesses since the mid-2000s. By combining Stonepeak’s expertise and resources with the Boundary Street team’s complementary experience and skillsets, we will have the ability to broaden our investment aperture and execute more efficiently on the opportunities we’re seeing in AI-driven businesses, including cloud services, enterprise and infrastructure software, and digital services, while bringing a more comprehensive breadth of offerings to our constituent borrowers and limited partners.”
– Michael Leitner, Senior Managing Director at Stonepeak
“We are thrilled to be partnering with Stonepeak to achieve the full scale of our vision for Boundary Street, and to continue being a strong partner to all of our stakeholders. As an early mover investor in digital infrastructure, Stonepeak knows the space extremely well and their expertise will be additive to our strategy. With the benefits of Stonepeak’s scale, resources, and shared passion for digital infrastructure, we will be even better positioned to continue making sound and thoughtful credit investments and helping grow tomorrow’s greatest technology businesses and digital infrastructure platforms. Our focus on both real asset intensive business models as well as those with exceptionally strong and defensible intellectual property foundations will continue in partnership with Stonepeak.”
– Rashad Kawmy, Partner and Co-Founder at Boundary Street
