Investment firm Stonepeak has acquired private credit investment manager Boundary Street Capital.

Announced this week, Boundary Street is a specialist private credit investment manager focused on the digital infrastructure, enterprise infrastructure software, and technology services sectors in the lower middle market. Boundary Street currently has more than $700 million of capital commitments.

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– Wikimedia Commons

Terms were not shared. The deal is set to close in Q4 2024.

Stonepeak Credit, the firm’s credit business, has been actively investing in private and secondary infrastructure credit since 2018. The company said this transaction further strengthens Stonepeak Credit’s digital infrastructure investing capabilities and supports its expansion into complementary sub-sectors, including enterprise and infrastructure software, cloud and managed services, technology-enabled services, advanced mobility, and earlier-stage digital infrastructure platforms.

Stonepeak will seek to offer a more comprehensive set of credit and credit-linked capital solutions to businesses.

Jack Howell, co-president of Stonepeak, said: “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. 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 [about] what this transaction means for our limited partners and look forward to having the Boundary Street team onboard.”

Stonepeak’s digital infrastructure investments include APAC operator Digital Edge, LATAM firm Cirion, North American operators Cologix and CoreSite, and Guam telco GTA. It also has investments in a number of tower firms.

Rashad Kawmy, partner and co-founder at Boundary Street, added: “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.”

Founded in 2018, Boundary Street has made a total of 31 investments totaling more than $700 million. Target investments generally range from $5 to $50 million in companies with $5 million or more in revenue.

Boundary Street Capital raised $330 million for a new digital infrastructure credit fund in May 2021. It was previously involved in a debt refinancing by 356 Data Centers.

Paul, Weiss, Rifkind, Wharton & Garrison LLP, and Simpson Thacher & Bartlett LLP served as legal counsel to Stonepeak. Hogan Lovells served as legal counsel to Boundary Street.