Blue Owl, an asset management firm, has entered into a definitive agreement to acquire IPI Partners, a digital infrastructure fund manager, for approximately $1bn.
This acquisition is set to position Blue Owl to capitalise on the growing demand for data centres, which are crucial for the rapid adoption of generative artificial intelligence (AI) technologies by businesses.
Go deeper with GlobalData
IPI Partners, based in Chicago, is a joint venture between ICONIQ Capital and Iron Point Partners, with around $10.5bn in assets under management as of 30 June 2024.
Since its inception in 2016, IPI is said to have become one of the largest private data centre investors in the US, with a portfolio of 82 data centres and over 2.2GWs of leased capacity spanning the US, EMEA, and APAC regions.
The acquisition will be funded by Blue Owl with an 80% equity and 20% cash mix.
IPI’s footprint in the data centre market includes tenants that are primarily investment-grade corporations, with several being Fortune 100 companies.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataThe firm’s global team of over 70 members and more than 50 investment professionals are expected to join Blue Owl and continue managing IPI’s existing funds.
Upon completion of the acquisition, IPI’s business will bolster Blue Owl’s digital infrastructure strategy within its Real Estate platform, under the leadership of Blue Owl Co-President Marc Zahr.
Blue Owl Co-CEOs Doug Ostrover and Marc Lipschultz said: “There is a massive market opportunity to finance data centres, matched by an increasing investor appetite for additional strategies investing behind cloud and AI-driven secular tailwinds.”
This move comes at a time when digital infrastructure is witnessing a surge in demand, driven by AI and the broader digital transformation of the economy.
In a similar vein, Blackstone and the Canada Pension Plan Investment Board recently agreed to acquire AirTrunk, an Australian data centre group, for an implied enterprise value of more than A$24bn ($16.10bn).
AirTrunk is a key player in the Asia Pacific data center market, with significant capacity and land for future expansion.
Blackstone anticipates that around $1trn will be spent in the US over the next five years on constructing and equipping new data centres, with an additional $1trn expected to be spent internationally.
