La Caisse Completes Acquisition of Yondr Group, Rejects Serious Allegations
First, last Tuesday the organization issued a press release stating along with DigitalBridge, it has completed the acquisition of Yondr Group:
DigitalBridge Group, Inc. (NYSE: DBRG) ("DigitalBridge") and La Caisse (formerly CDPQ) today announced the successful completion of the acquisition of Yondr Group ("Yondr"), a global developer, owner, and operator of hyperscale data centers, from Cathexis Holdings, L.P. (“Cathexis”). This strategic investment enhances DigitalBridge and La Caisse’s successful history of partnership in digital infrastructure investing, positioning Yondr to accelerate its expansion in strategic markets and meet the surging demand for hyperscale and AI-driven data center solutions. La Caisse is investing alongside DigitalBridge-managed investment vehicles and has assumed joint control of Yondr.
In connection with the completion of the acquisition, Aaron Wangenheim has been appointed as Chief Executive Officer, and Sandip Mahajan as Chief Financial Officer, effective immediately.
Yondr develops and operates data centers to address the complex data center capacity demands of the world's largest technology companies. As demand for advanced data processing capabilities expands, Yondr has more than 420MW of capacity committed to hyperscalers and significant additional land to support a total potential capacity of over 1GW. The company is well-positioned to capitalize on the growing demand for advanced data processing capabilities driven by ongoing digital transformation, the expansion of cloud solutions, and the rise of AI.
“We’re thrilled to finalize our acquisition of Yondr alongside La Caisse,” said Jon Mauck, Senior Managing Director and Head of Data Centers at DigitalBridge. “With a diverse global portfolio of campuses, Yondr further strengthens DigitalBridge’s world-class data center portfolio and reinforces our focus on being a global partner to the leading hyperscale, technology, and AI companies that are driving the digital economy. We look forward to working alongside Aaron and Sandip, who bring extensive leadership experience, as we support Yondr’s strategy of developing and operating scaled capacity to meet the demands of AI and cloud computing. We are also very pleased to partner again with La Caisse, who shares our partnership-oriented approach to long-term value creation.”
“Over the past few years, we have explored various direct investment opportunities in the data center space, and Yondr has stood out as a compelling platform to capitalize on the growth of the sector. At the end of 2024, we joined forces with DigitalBridge – a trusted partner – to invest in Yondr’s next development phase under renewed leadership and ownership,” said Emmanuel Jaclot, Executive Vice-President and Head of Infrastructure at La Caisse. “This investment reflects our conviction in the value of digital infrastructure and our confidence in Yondr’s ability to scale with agility, innovate, and deliver AI-ready data solutions at pace.”
DigitalBridge and La Caisse have a longstanding track record of partnership in the digital infrastructure sector. In 2019, La Caisse acquired a 30% stake in Vertical Bridge, the largest private owner and operator of communications infrastructure in the United States and a DigitalBridge portfolio company. In 2024, DigitalBridge and La Caisse supported Vertical Bridge's $3.3 billion tower transaction with Verizon, further solidifying their collaborative efforts to expand capabilities across the digital infrastructure ecosystem.
"I am proud to have supported Yondr on its journey since its formation in 2018. Yondr has become a vital infrastructure partner to many of the world's largest technology companies, and I believe DigitalBridge and La Caisse are the right partners to support Yondr through its next stage of growth. I look forward to seeing what the business will achieve," said William Harrison, CEO of Cathexis.
Leadership Team Appointments
Mr. Wangenheim, who joins Yondr as Chief Executive Officer, brings over two decades of data center leadership and extensive experience overseeing the development and operations of data center campuses around the world. He spent over a decade at T5 Data Centers in roles of increasing responsibility, including eight years as Chief Operating Officer. Most recently, he served as an advisor and developer of customized data center solutions, where he worked with numerous investors evaluating both the property and operating aspects of the evolving data center industry. In his new role, Mr. Wangenheim will lead Yondr’s next phase of growth, as the company continues to meet the growing demands of hyperscalers.
Mr. Mahajan, who joins Yondr as Chief Financial Officer, brings over three decades of financial leadership and infrastructure investment experience, including expertise in leveraged finance, equity and debt raising, and financial transformation. He has served as Chief Financial Officer at Mitie Group PLC, a publicly listed, UK-based support services business, and was earlier at Balfour Beatty PLC, a publicly listed construction services business in a number of roles, including as a project finance leader specializing in infrastructure equity investments.
“Yondr has an impressive track record as a leading developer, owner, and operator of hyperscale data centers, and I’m excited to be joining the company as Chief Executive Officer at such a pivotal time for the business and the industry,” said Mr. Wangenheim. “I look forward to leading Yondr through its next phase of growth with the backing of two world-class investors that appreciate the critical role we play in supporting our clients.”
Mr. Wangenheim succeeds Paul Cossell, who is retiring from the Chief Executive Officer role after two and a half years at Yondr and a nearly three-decade career in the construction and infrastructure industry. Mr. Mahajan succeeds Chester Reid, who is stepping down from the Chief Financial Officer role after more than two years at Yondr to pursue other business interests.
ABOUT DIGITALBRIDGE
DigitalBridge (NYSE: DBRG) is a leading global alternative asset manager dedicated to investing in digital infrastructure. With a heritage of 30 years investing in and operating businesses across the digital ecosystem, including cell towers, data centers, fiber, small cells, and edge infrastructure, the DigitalBridge team manages approximately $100 billion of infrastructure assets on behalf of its limited partners and shareholders. For more information, visit: www.digitalbridge.com.
ABOUT LA CAISSE
At La Caisse, formerly CDPQ, we have invested for 60 years with a dual mandate: generate optimal long-term returns for our 48 depositors, who represent over 6 million Quebecers, and contribute to Québec’s economic development.
As a global investment group, we are active in the major financial markets, private equity, infrastructure, real estate and private debt. As at December 31, 2024, La Caisse’s net assets totalled CAD 473 billion. For more information, visit lacaisse.com or consult our LinkedIn or Instagram pages.
If you read the story of how La Caisse (formerly CDPQ) and Vertical Bridge was a relationship based on trust and targeted towards accelerating growth, you'll understand where this acquisition of Yondr Group along with DigitalBridge is heading.
This isn't the first data center joint venture of this nature I've covered on my blog.
Recall back in October of last year when I discussed how data center firm Equinix formed a joint venture with Singapore's sovereign wealth fund GIC and CPP Investments, raising more than $15 billion in capital.
A month earlier, CPP Investments announced a co-investment alongside Blackstone to buy AirTrunk in A$24bn deal (see my comment here).
Hyperscalers like Microsoft, Meta, Alphabet/ Google, Amazon and Oracle continue to invest billions in AI and they need data centers.
In fact, a CNBC article back in February stated "tech megacaps plan to spend more than $300 billion in 2025 as AI race intensifies".
The way a friend of mine in San Francisco explained it to me is these hyperscalers prefer spending a lot of money now on data centers and AI talent because they believe the payoff will be huge.
There is no material slowdown in capex spending so firms like Equinix and Yondr are going to be very busy over the next five years (don't ask me what happens after that).
I don't have details but this is obviously a significant co-investment alongside DigitalBridge to acquire Yondr Group which was sold for $5.8 billion.
In other news, La Caisse announced it received 100% in the Global SWF GSR Scoreboard:
For the third year in a row, La Caisse has ranked at the top of the Global SWF GSR Scoreboard (Governance, Sustainability and Resilience), published on July 1. This perfect score consolidates its leadership position in sustainability among the global investors analyzed.
With a score of 100%, La Caisse shares the top spot with eight other institutional investors, including Canadian funds Ontario Teachers’ (OTPP) and British Columbia Investment (BCI), and sovereign wealth funds Temasek (Singapore) and NZ Super Fund (New Zealand).
This recognition from Global SWF confirms the quality of our approach to sustainable investing. It also strengthens our leadership position, just after the unveiling of our new climate strategy, which reaffirms our ambition in this area. Congratulations to our teams whose daily commitment and mobilization advance sustainability issues in Québec and around the world.
Charles Emond, President and Chief Executive Officer, La CaisseThe Global SWF 2023 GSR Scoreboard—a global benchmark—assesses the governance, sustainability and resilience practices of over 200 sovereign wealth and pension funds worldwide.
ABOUT LA CAISSE
At La Caisse, formerly CDPQ, we have invested for 60 years with a dual mandate: generate optimal long-term returns for our 48 depositors, who represent over 6 million Quebecers, and contribute to Québec’s economic development.
As a global investment group, we are active in the major financial markets, private equity, infrastructure, real estate and private credit. As at December 31, 2024, La Caisse’s net assets totalled CAD 473 billion. For more information, visit lacaisse.com or consult our LinkedIn or Instagram pages.
You can read more about The Global SWF 2025 GSR Scoreboard here.
No big surprise here, La Caisse, BCI and OTPP are global leaders in responsible investing as are other Maple Eight funds which scored very high.
What did surprise me was La Caisse came out late last week to firmly reject allegations that it facilitates or encourages international crimes through its investments:
Following the publication of the report by United Nations Special Rapporteur Francesca Albanese, La Caisse wishes to be clear and firmly rejects allegations that it facilitates or encourages international crimes through its investments.
Allegations and facts must be corrected. For one, the majority of investments in the companies mentioned are not directly managed by La Caisse. They are managed by intermediaries or are held through standard products offered to all investors. Furthermore, La Caisse holds a very small percentage of shares in these companies, which limits its ability to directly influence them. In actual fact, it owns less than 0.1% of the majority of the companies identified. The rest are largely multinationals, such as Booking, Airbnb or Alphabet (Google), that are available and used all over the world and owned by a large number of investors. In addition, when La Caisse cannot exercise direct influence to encourage best practices, it does so through Federated Hermès, a globally recognized service provider specialized in shareholder engagement. We expect all of these companies to meet the highest standards wherever they operate.
Lastly, La Caisse would like to reiterate that it has also ceased any new engagement in Israel and the Occupied Palestinian Territories. La Caisse also reaffirms that it acts at all times in full compliance with all requirements of Canadian law and will continue to act in accordance with international standards on this matter wherever it operates. La Caisse takes its responsibilities as a global investor very seriously and is committed to continue operating according to the highest standards of human rights.
ABOUT LA CAISSE
At La Caisse, formerly CDPQ, we have invested for 60 years with a dual mandate: generate optimal long-term returns for our 48 depositors, who represent over 6 million Quebecers, and contribute to Québec’s economic development.
As a global investment group, we are active in the major financial markets, private equity, infrastructure, real estate and private debt. As at December 31, 2024, La Caisse’s net assets totalled CAD 473 billion. For more information, visit lacaisse.com or consult our LinkedIn or Instagram pages.
A couple of remarks. First, these allegations are beyond ridiculous, the investment world of 2025 has totally lost its marbles and we need to restore some common sense.
Second, I didn't like reading this: "La Caisse would like to reiterate that it has also ceased any new engagement in Israel and the Occupied Palestinian Territories."
I've explained in detail why I am against calls for UPP to divest from Israel and it irritates me when I read La Caisse calling it the "Occupied Palestinian Territories", it's Palestinian territory which encompasses the Gaza Strip and West Bank, including parts of East Jerusalem.
Anyway, we live in a country called Canada. Most people who left the Middle East to live in Canada did so to leave oppressive regimes.
When my father left Greece to complete his residency in psychiatry in Chicago in the mid sixties, he moved to Montreal with my mother and worked his tail off to put a 25% down payment on a house and send his three kids to French private school.
Of course we relished our Greek roots and culture but my dad was clear, we are Canadian and live in Quebec and as such, we will respect the language and culture.
I understand the Middle East crisis arouses passions from Palestinians and Jews and others from all over the world but lets leave our pension funds out of this conflict, divestment will do nothing to bring peace to the Middle East.
Lastly, La Caisse and Fondaction will invest $250 million by way of a subordinated loan to Boralex:
Boralex Inc. (TSX: BLX) (“Boralex” or the “Company”) announces the closing of an additional corporate financing of $250 million by way of an unsecured subordinated loan with a term of 8 years. The investment is made by La Caisse (formerly CDPQ), which is providing an amount of $200 million, to which is added a $50 million investment by a new partner, Fondaction.
Financial Highlights
- Structure: unsecured subordinated loan
- Amount: $250 million
- Maturity Date: June 27, 2033
- Interests: payable semi-annually
- Repayment: non amortizing loan, payable at maturity date, subject to compliance with obligations associated with this type of loan
“This new corporate financing is in line with the execution of our 2030 Strategy, announced on June 17, and allows us to mobilize resources immediately for the financing of our projects,” noted Bruno Guilmette, Executive Vice President and Chief Financial Officer of Boralex. “We are thereby strengthening our ability to support our growth activities, by further diversifying our sources of financing, while maintaining our financial rigor. We would like to thank La Caisse and Fondaction for their confidence in our long-term strategy.”
“As a major shareholder since 2017, La Caisse supports Boralex, an independent Canadian leader in renewable energy production, in the development of a diversified portfolio of high-quality projects” said Jérôme Marquis, Managing Director and Head of Private Credit at La Caisse. “By doubling our existing debt financing with this transaction, we reaffirm our confidence in Boralex’s execution capacity and continued growth, both in Québec and internationally.”
La Caisse recently announced its 2025-2030 climate strategy aimed at accelerating the decarbonization of businesses and increasing its investments related to the energy transition, in order to reach $400 billion in investments in climate action by 2030.
“This impact investment in Boralex supports the development of clean energy infrastructure with tangible and measurable environmental benefits. It reflects Fondaction’s commitment to a sustainable economic transformation, aligned with our strategic objectives—both in the fight against climate change and in generating meaningful socioeconomic benefits for Québec,” said Claire Bisson, Vice President and Chief Investment Officer, Fondaction.
Desjardins Capital Markets acted as financial advisor to Boralex.
Again, no big surprise here, Boralex is an important holding of La Caisse and it checks off all the boxes: Quebec based company, renewable energy leader, and it is in line with its 2025-2030 climate strategy aimed at accelerating the decarbonization of businesses and increasing its investments related to the energy transition, in order to reach $400 billion in investments in climate action by 2030.
Interestingly, I helped Bruno Guilmette set up infrastructure as an asset class at PSP Investments 20 years ago and he did well there but eventually moved on to bigger things and seems to be very happy at Boralex.
"It's a big club, you and I aren't part of the Big Club" the late great comedian George Carlin once noted.
If you don't have connections and aren't part of Quebec Inc., good luck making it big in this province.
Alright, that's a wrap better stop there before my cynical Greek side takes over.
Below, Marc Ganzi, CEO, DigitalBridge discusses the demand for private capital around the AI transformation and investing in next-generation digital infrastructure with Bloomberg's Alix Steel at Bloomberg Invest (4 months ago).
Also, at The Tech Capital’s International Finance Forum, DigitalBridge founder Marc Ganzi explains why investors must move beyond isolated data centre plays and embrace full digital infrastructure ecosystems. With US$100 billion in assets across fibre, towers, and data centres, Ganzi highlights the importance of operational expertise, exit strategies, and investing through cycles as AI and cloud reshape global demand (one month ago).
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