Investment firm Argo Infrastructure Partners has increased its stake in TierPoint to take a majority interest in the US colo provider.
Announced this week, Argo has now invested around $700 million since 2020 in TierPoint.
Combined with the $1.6 billion of securitization issuances over the past 12 months, $2.3 billion has been invested in the colo company since 2020.
“We are pleased to expand our investment in TierPoint, reaffirming our commitment as a dedicated, long-term investor in the exceptional platform,” said Jason Zibarras, founding partner of Argo. “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.”
Founded in 2010, TierPoint operates around 40 data centers across 18 US markets, mostly in second-tier cities. The company has expanded through a mixture of new builds and acquisitions, including Colo4, Perimeter Technology Center, Adhost Internet Advertising, Baltimore Technology Park, Philadelphia Technology Park, Xand, CxP Data Centers, Altered Scale, Windstream Hosted Solutions, and Cosentry.
Founded in 2013, New York-based Argo is an independent fund manager focused on infrastructure investing. Its portfolio includes power generation assets, utilities, electric transmission systems, and an energy storage network.
Argo first invested in TierPoint alongside Wafra and Macquarie Capital Principal Finance in a 2020 $320 million raise. The company then invested another $500 million in TierPoint in 2022, becoming the company’s largest shareholder.
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.
