Stonepeak, an alternative investment firm specializing in infrastructure and real assets, announced that it has agreed to acquire Boundary Street Capital, LP, a specialist private credit investment manager focused on the digital infrastructure, enterprise infrastructure software, and tech services sectors in the lower middle market.
Boundary Street currently has $700+ million of capital commitments.
Stonepeak’s credit business has been investing in private and secondary infrastructure credit since 2018.
Its team of credit professionals takes a “disciplined” approach to investing across the capital structure as they seek to create a diverse portfolio in the infrastructure and real assets sectors, including digital infrastructure, energy and energy transition, and transport and logistics.
Stonepeak claims it has been at the forefront of investing in the infrastructure assets underpinning the global megatrend of digitalization currently being driven by data proliferation and the increased adoption of AI.
This transaction strengthens Stonepeak Credit’s digital infrastructure investing capabilities and supports its expansion into sub-sectors, including enterprise and “infrastructure software, cloud and managed services, technology-enabled services, advanced mobility, and earlier stage digital infrastructure platforms.”
With the addition of Boundary Street’s platform and team of experienced professionals who have credit and tech sector expertise, Stonepeak will seek to offer a 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 transaction is expected to close in the “fourth quarter of 2024 subject to customary and regulatory approvals.”
Terms of the transaction were “not disclosed.”
Paul, Weiss, Rifkind, Wharton & Garrison and Simpson Thacher & Bartlett LLP served as legal counsel to Stonepeak.
Hogan Lovells served as legal counsel to Boundary Street.
Stonepeak is an alternative investment firm specializing in infrastructure and real assets with approximately “$70 billion of assets under management.”
Through its investment in defensive, hard-asset businesses globally, Stonepeak aims to create value for its investors and portfolio companies, with a focus “on downside protection and strong risk-adjusted returns.”
Stonepeak, as sponsor of private equity and credit investment vehicles, provides capital, operational support, and committed partnership to grow investments in its “target sectors, which include communications, energy and energy transition, transport and logistics, and real estate.”
Stonepeak is headquartered in New York with “offices in Houston, London, Hong Kong, Seoul, Singapore, Sydney, Tokyo, and Abu Dhabi.”
Boundary Street is a private credit investment manager focused on providing capital solutions to lower middle market tech and telecom businesses and backed by investment professionals.
Boundary Street seeks to invest credit in “durable, recurring revenue businesses providing the mission critical services that will drive economic growth, bridge the digital divide, and keep families and businesses connected.”
