Acquisition to Enhance DigitalBridge’s Capabilities in Complementary Mid-Market Segment
DigitalBridge Group, Inc. announced that an affiliate, DigitalBridge Investments, LLC, has agreed to acquire AMP Capital’s global infrastructure equity investment management business, part of its Collimate Capital subsidiary, in a transaction valued at $328 million*, comprising upfront payments for the management platform, fund sponsor investments, and retained performance fees, plus potential contingent payments based on certain future performance thresholds. AMP Capital’s international infrastructure equity platform comprises four investment funds with $5.5 billion* in fee-earning assets under management, including the $3.4 billion Global Infrastructure Fund II (“GIF II”) and $1.4 billion Global Infrastructure Fund I (“GIF I”).
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“This transaction represents a unique opportunity to extend our leadership in digital investment management”
Strategic and financial benefits of the transaction include:
- Advances ‘Full Stack’ digital infrastructure capabilities: the Business fits strategically alongside DigitalBridge’s flagship value-add digital infrastructure equity franchise, positioning the firm to capitalize on smaller, high-return mid-market investment opportunities.
- High-caliber plug-and-play investment team:The experienced investment team will operate as a new, distinct business unit within the DigitalBridge investment management platform, augmenting DigitalBridge’s industry-leading team of digital infrastructure professionals with a shared focus on generating attractive long-term risk-adjusted returns.
- Accretive transaction lifts guidance: Upon closing, 2022 projected run-rate fee related earnings (“FRE”) from the DigitalBridge IM platform is expected to increase at the midpoint by approximately 20% over prior guidance. Upon closing, the Business is expected to be immediately accretive to DigitalBridge’s after-tax income per share of Class A common stock.
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“This transaction represents a unique opportunity to extend our leadership in digital investment management,” said Marc Ganzi, Chief Executive Officer of DigitalBridge. “In addition to accelerating and scaling the growth of our platform, we are empowering a team of high-caliber investment professionals who share our commitment to delivering strong long-term returns for investors and have significant experience investing in the value-added mid-market infrastructure segment directly adjacent to our flagship equity business. The Business will deliver immediate financial benefits and growth potential, as we aim to enhance our ability to meet and exceed our near- and medium-term business goals.”
A supplemental investor presentation outlining key deal and financial terms of the transaction is available on the Shareholders section of the DigitalBridge website and will be furnished as an exhibit to a Current Report on Form 8-K with the U.S. Securities and Exchange Commission. The transaction is expected to close before the end of the year, subject to customary regulatory approvals.
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