3I Infrastructure Plc considered a deal to take specialist peer Digital 9 Infrastructure Plc private, people familiar with the matter said, as more alternative investment firms look to consolidate.
(Bloomberg) — 3I Infrastructure Plc considered a deal to take specialist peer Digital 9 Infrastructure Plc private, people familiar with the matter said, as more alternative investment firms look to consolidate.Â
The London-listed fund recently put pens down after deciding not to pursue an offer for Digital 9, according to the people, who asked not to be identified discussing confidential information. Representatives for 3I Infrastructure and Digital 9 declined to comment.Â
Digital 9 is a listed fund with a market value of £722 million ($867 million) that targets infrastructure assets including data centers and undersea fiber. 3I Infrastructure, an arm of private equity firm 3I Group Plc, invests in sectors ranging from energy transition to transport and logistics. It has a market value of £3 billion.
As it becomes harder to raise new funds, alternative investment firms have increasingly been looking to snap up industry peers to diversify strategies and boost assets. In the last two years, KKR & Co. has bought UK infrastructure firm John Laing Group Plc, CVC Capital Partners acquired secondaries manager Glendower Capital and EQT AB agreed to take over Baring Private Equity Asia Ltd.
While infrastructure funds generate lower returns than buyout vehicles, they are typically seen as a steadier, long-term bet to protect against inflation. Assets held in infrastructure funds are often essential to day-to-day living, meaning the companies running them can more easily pass on price rises to customers.Â
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