Source: Investment Week UK
Triple Point Investment Management is to launch a digital infrastructure-focused investment trust on the London Stock Exchange, hopeful of investor support despite the continuing pandemic.
Digital 9 Infrastructure will invest in a range of digital infrastructure assets that deliver a reliable, functioning internet and will comprise future proofed, non-legacy, scalable platforms and technologies, Triple Point announced today (1 February). The company expects to publish a prospectus in March and complete the IPO shortly afterwards.
James Cranmer, managing partner of Triple Point, said the investments the trust made would be long term in nature, focusing on stable cash flows and have environmental, social and governance considerations at their core.
“Digital 9 Infrastructure (DGI9) is an opportunity to invest in the true backbone of the internet,” said Cranmer.
“From day one, DGI9 will deliver returns underpinned by 20-year plus contracted revenue from some of the largest companies in the world, including Facebook, Apple, Amazon, Netflix, Google and Microsoft.”
Cranmer added that the pandemic had only accelerated the “fundamental transition to a digital economy”, the growth of which was “already unstoppable”.
“The convenience and flexibility of technologies like remote working, social media and video streaming have demonstrated their economic and social benefits – how we shop, socialise and work is fundamentally changing,” he said.
The launch comes just three months after coronavirus restrictions hampered the investment manager’s fundraising efforts for its Triple Point Energy Efficiency Infrastructure trust.
Launching with a £200m target in October, Cranmer told Investment Week a month later that securing just half of that amount was due to investor reluctance to commit amid the pandemic.
At the time, Cranmer said: “Investors were telling us they like the return, the inflation protection, the sector and the ESG characteristics. But [they felt] it made much more sense for them to wait for [the trust] to get up and running, and then take part next time round.”
Today, Triple Point has already earmarked £160m in initial assets for the DGI9 trust, according to a statement from the company, along with £1bn of “portfolio-ready operational infrastructure and are confident of deploying the full IPO proceeds well within 12 months of IPO”.
The trust will be overseen by what Triple Point cites as a “diverse board”, comprising five independent non-executive directors, and featuring a former chief customer officer at BT Group.
DGI9 will invest in assets including, but not limited to, subsea fibre, data centres, terrestrial fibre, tower infrastructure and small cell networks, including 5G.
Thor Johnsen, head of digital infrastructure, will lead the team responsible for executing the trust’s investment strategy, supported by a team with experience in this sector.