Digital 9 Infrastructure: investing in the infrastructure of the digital economy

Listed in March 2021

Market: Specialist Fund Segment of Main Market

Strategy: Investment in digital infrastructure assets

 

Introduction

London’s investment funds market is creating new opportunities for investors while funding a new wave of innovation. In March 2021, Digital 9 Infrastructure listed on the Specialist Funds Segment and has raised £845m in total across IPO and further issuances. Thor Johnsen, Head of Digital Infrastructure at Triple Point, the fund manager for Digital 9 Infrastructure, says that the permanent capital structure of the investment fund enables it to be a long-term investor and fulfilling its mission to be aligned with UN Sustainable Development Goal 9.

What does the fund do and why has it been launched?

Digital 9 Infrastructure focuses on the assets that enable the internet and which underpin our digital economy. The fund is focused on four sub-sectors: data centres; subsea fibre networks; terrestrial fibres; and wireless infrastructure. The data centres are the brain of the internet; subsea fibre is the backbone; and fibre and wireless are the capillaries, connecting the internet to consumer and business end users.

The fund is helping to improve connectivity and reduce the digital divide globally and is investing in the infrastructure of the internet in an environmentally sustainable way such as investing in decarbonising data centres.

Our purpose is to align ourselves with the UN Sustainable Development Goal 9 – to build resilient infrastructure, promote inclusive and sustainable economic growth and foster innovation.

 

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What opportunity does the fund offer that was not previously on the market?

There have been few opportunities for investors in the public markets to access this type of asset class . It has been hard for investors in Europe, let alone London, to access stocks where you can gain exposure to data centres, for example. Yet the appetite for digital infrastructure assets was attractive.

How much did the fund raise?

We raised £300m in our IPO and have now raised £845m across four rounds including follow on raises. We have been able to scale up and maintain our investment thesis, buying assets with long-term visibility on revenues, contracts and inflation protection.

What has been the investor response?

Our investor base is diverse, broad and deep. It includes private wealth managers, fund managers, institutional investors and private investors.

When we held our IPO we had to educate investors about digital infrastructure and our strategy and how we would execute on it. Now that we are executing on that strategy and have gone back to the market, our conversations with investors have turned to our assets and how they are performing.

What does the permanent capital structure enable the fund to do?

There are many benefits from the permanent capital structure of London’s investment funds market.

The investment trust sector was attractive for the product we are creating, which aims to create a sustainable, growing accretive yield, including through investing in long life assets.

Certain vendors like the permanent capital structure of an investment trust. As a publicly listed company we are transparent. And we are not looking to flip assets; we generally aim to hold them for the long term. There’s no pressure to sell them, which reflects their long-life nature.

The investment trust structure enables us to look across the full digital infrastructure sphere. Understanding the full value chain is important to being a good investor in this space.

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Interested in listing with London Stock Exchange?

If you’d like to talk to us about listing your investment funds on the London Stock Exchange, please contact us via the form and a member of our team will be in touch to see how we can help you establish in London and start growing globally.

Dr Darko Hajdukovic

Head of Platforms and Product, Primary Markets

Alexander Imseeh

Business Development Manager, Primary Markets

Akhil Suresh

Business Development Manager, Primary Markets

Thomas Abbott

Senior Manager, Product Development

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