Background

Spire Capital Limited (“Spire”) continues to have high conviction in select pockets of global private markets (i.e., ‘sweet spots’). This includes working in partnership with Valterra Partners LLC (‘Valterra’), to find attractive direct co-investment opportunities within the field of private equity infrastructure. More specifically, this means investment opportunities attached to essential services, underserved end-markets and long-term secular demand trends (e.g., data consumption).

Market Overview

According to Blackstone, more data has been created in the past three years than in all of human history combined, driven by cloud adoption, content creation and now AI. All this data needs a place to live, creating demand for data centers and opportunity to invest at scale. Internet users, connected devices and speeds continue to increase, creating significantly more demand for data infrastructure services. The assets that provide the access to data (towers, fiber and datacenters) are increasingly being viewed as critical infrastructure to the economy. With this, data centres are increasingly being viewed as infrastructure assets because they possess many of the same key attributes as traditional core infrastructure investments including long term contracts, stable and predictable cash flows, high free cashflow generation and stable underlying demand drivers.