Firms & Funds

GI Partners nears target, eyes cap on debut digital infrastructure fund

In November, Washington State Investment Board committed $175m to the fund, with an additional $75m of co-investment capital.

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GI Partners collected around $1.2 billion for its debut digital infrastructure fund that will invest in assets like data centers, a person with knowledge of the fund told Buyouts.

GI Partners is targeting $1.25 billion with a $1.5 billion hard cap for its debut digital infrastructure fund. In November, Washington State Investment Board committed $175 million to the fund, with an additional $75 million of co-investment capital.

As part of the development of the strategy, the firm last year hired Mark Prybutok as a managing director. Prybutok joined from Alinda Capital, where he led the firm’s telecom infrastructure strategy. The strategy also is led by former Equinix CEO Steve Smith, who GI hired last year, the person said.

Park Hill Group is working as placement agent on the fundraising.

Digital infrastructure generally refers to data centers, telecommunication towers and fiber wiring. GI began talking to investors about the fund in 2018, sources told Buyouts at the time.

Another firm that focuses heavily on digital infrastructure assets is Grain Communications. Grain, which closed its fourth fund on nearly $900 million last year, targets investments in fiber-optic communications network, radio frequency licenses, cell towers and other ancillary systems, according to Grain’s Form ADV.

GI Partners closed its most recent flagship, Fund V, on $2.7 billion in 2017. The firm closed Fund IV on $2 billion in 2014.

Led by Executive Managing Director and Founder Rick Magnuson, GI Partners invests in tech, media and telecom, healthcare, retail and leisure and business and financial services.

GI has about $15.3 billion of discretionary and non-discretionary assets under management, according to the firm’s Form ADV.

GI Partners closed its third fund on $1.9 billion in 2009; its second fund on $1.45 billion in 2006; and its debut fund on $526 million in 2001, according to data provider Pitchbook.

Action Item: Check out GI’s Form ADV here: https://bit.ly/38hCSF1