NEW YORK, May 25, 2022 -- Madison International Realty, a leading real estate private equity firm, announced that it has invested in the recapitalization of Cologix, one of North America’s leading network-neutral interconnection and hyperscale edge data center companies. Madison’s investment is part of a total $3 billion recapitalization led by Stonepeak, an alternative investment firm specializing in infrastructure and real assets. The total transaction represents one of the largest single asset continuation vehicles raised in digital infrastructure to date.
Based in Denver, Colorado, Cologix is one of the largest private interconnection and hyperscale edge platforms in North America with a carrier-dense ecosystem of more than 600 networks, 300 cloud providers and 29 onramps. Cologix operates more than 40 digital edge and ScalelogixSM hyperscale edge data centers in 11 North American markets, providing colocation and connectivity solutions to over 1,600 customers. Earlier this year, Cologix completed a $1.65 billion asset-backed securitzation.
“We are excited to partner with Cologix and Stonepeak in this transaction,” said Ronald Dickerman, Madison International Realty Founder and President. “Cologix is well capitalized and fits our criteria as an innovative, dynamic company in the rapidly growing digital infrastructure sector, which is investing to meet the tremendous demand of the digital economy.”
“Madison’s participation will help support our ongoing growth as we move forward with our plans to develop and acquire additional digital edge and Scalelogix data centers in current and new markets across North America,” said Cologix Chairman and Chief Executive Officer Bill Fathers. “We are targeting the strategic expansion of our platform to fulfill the increasing demand from cloud and network providers as well as digital enterprises.”
“Madison is excited about the timing of our investment in the recapitalization of Cologix, given the growth prospects of the company and their commitment to ESG and sustainability initiatives,” added Kyle Torpey, Madison International Realty’s Head of US Investments.
Forecasts indicate robust growth for the data center industry. By one measure, the hyperscale data center market, which exceeded $20 billion in size in 2020, is expected to grow at a compounded annual growth rate of 15 percent from 2021 to 2027, according to data from Global Market Insights.
About Madison International Realty
Madison International Realty (www.madisonint.com) is a leading liquidity provider to real estate investors worldwide. Madison provides equity capital for real estate owners and investors seeking to monetize embedded equity, to replace capital partners seeking an exit and to recapitalize balance sheets. The firm provides equity for recapitalizations, partner buyouts and capital infusions; and acquires joint venture, limited partner and co-investment interests as principals. Madison invests in secondary transactions and focuses on existing properties and portfolios in the U.S., U.K., and Europe. Madison has offices in New York, London, Luxembourg, Amsterdam and Frankfurt, where the firm operates under the name of Madison International Realty GmbH.
Cologix provides carrier- and cloud-neutral interconnection and hyperscale edge data centers and services across North America. Cologix is the interconnection hub for cloud service providers, carriers and a rich ecosystem of partners who want to deploy applications at the very edge across Canada and the U.S. With a growing portfolio of next generation facilities that meet the unique requirements for hyperscale growth with deep connectivity, Cologix offers massive scale and tailor-made data center solutions to accelerate customers’ digital transformation. For on-demand connectivity for scale and control, Cologix Access Marketplace provides fast, reliable, self-service provisioning. For a tour of one of our data centers in Ashburn, Columbus, Dallas, Jacksonville, Lakeland, Minneapolis, Montreal, New Jersey, Silicon Valley, Toronto or Vancouver visit Cologix or email firstname.lastname@example.org. Follow Cologix on LinkedIn and Twitter.
Stonepeak is a leading alternative investment firm specializing in infrastructure and real assets with approximately $48.5 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, and to have a positive impact on the communities in which it operates. Stonepeak sponsors investment vehicles focused on private equity and credit. The firm provides capital, operational support, and committed partnerships to sustainably grow investments in its target sectors, which include communications, energy transition, transport and logistics, and social infrastructure. Stonepeak is headquartered in New York with offices in Austin, Hong Kong, Houston, London and Sydney. For more information, please visit www.stonepeak.com.