CVC DIF and Northleaf divest US data center portfolio, Vault Digital Infrastructure, to Igneo Infrastructure Partners

• Vault Digital Infrastructure (“Vault”) is a joint venture owned by CVC DIF (49%), Northleaf (49%), and Landmark Dividend (2%)
• Over the last seven years, CVC DIF’s local North American team and Northleaf have built an attractive, diversified portfolio of strategic data center assets in core US markets, with 75MW of critical capacity
• The transaction demonstrates CVC DIF and Northleaf’s ability to deliver value creation initiatives as well as develop timely exit options to ensure consistent return of capital to their investors 

CVC DIF, the infrastructure strategy of leading global private markets manager CVC, and Northleaf Capital Partners (“Northleaf”), a global private markets investment firm, are pleased to announce that Vault Digital Infrastructure (“Vault”), a joint venture owned by CVC DIF, Northleaf and Landmark Dividend (“Landmark”), has sold its data center portfolio to Igneo Infrastructure Partners, the direct infrastructure business of First Sentier Investors.

The portfolio consists of seven operational co-location and enterprise data centers in key strategic US markets with strong demand dynamics. The mission-critical nature of the assets, strong tenant credit profiles and sectoral tailwinds have provided highly attractive, predictable cash flows.

CVC DIF, through its CIF I fund, Northleaf, through its mid-market infrastructure funds, and Landmark, established Vault in 2018 with an aim to invest in operational data centers. In the subsequent years, Vault assembled an attractive, resilient portfolio, which is today mission critical to its established tenant base. Vault has also executed several value-enhancing initiatives, including lease extensions, facility expansions, new tenancies and financing optimisations, underpinned by the gradual de-risking of the assets.

Andrew Freeman, Partner and Head of Divestments at CVC DIF, said: “We have successfully scaled the portfolio which now represents an attractive platform for future growth with these strategically located assets and a diversified, blue-chip customer base. This transaction is a strong example of CVC DIF’s ability to drive value creation during its investment ownership. It also highlights our ability to opportunistically exit an investment and continues our strong track record for our investors.”

Chris Rigobon, Managing Director and Head of Digital Infrastructure at Northleaf, said: “We have driven significant value creation by growing Vault from a single facility into a scaled platform through a thoughtful consolidation strategy focused on individual data centers.  Creating a platform diversified by customer, contracts and region is a prime example of Northleaf’s North American-focused, middle-market infrastructure strategy.”

Karlton Holston, Executive Vice President – Data Centers at Landmark, said: "We are pleased with the successful outcome of this transaction, resulting from collaboration over many years with our partners at Vault. This transaction exemplifies Landmark’s strong track record which has enabled us to build a leading position in the digital infrastructure sector, with over 70 Data Center assets under management for our investors and clients."

CVC DIF, Northleaf and Landmark were advised on the transaction by Akin Gump Strauss Hauer & Feld LLP (legal).