Digital Infrastructure

Axxeltrova has partnered with a large a private equity fund in the US focused on the rapidly expanding Digital Infrastructure sector.

Digital Infrastructure is foundational to the economic growth and wellbeing of a nation, region, city or organisation. Digital infrastructure captures the entire spectrum of network, computing and storage required for the successful delivery of application and services in a mobile and connected economy.

The Sectors

  • Wireless communications and 5G – Digitisation is a major economic driver and requires a new generation of networks. Massive investments will be required to deploy 5G infrastructure and the emergence of the “Neutral Host Model”.
  • Network Infrastructure and Internet Backbone – Continued rollout of fibre infrastructure in both developed and emerging markets.
  • Data Centres and Cloud Computing – The exponential growth of cloud services as well as billions of connected mobile devices and broadband subscriptions will require a range of data centres from edge computing to hyperscale computing.
  • Smart City Infrastructure – Leveraging the development in smart technologies such as the Internet of Things, Smart Cities address the challenges of modern urbanisation by helping to optimise various services and resources to improve citizens quality of living.
  • Internet of Things (IOT) – The Internet of Things is made up of devices, from simple sensors to smartphones and wearables, connected together, they will produce massive amounts of data that will require storage and networking infrastructure.
  • Platforms/Software/Systems – Supporting platforms and systems used to deploy specialist software applications and manage the digital infrastructure such as automation, machine learning/Artificial Intelligence (AI), virtualization of elastic infrastructure and much more.

The Strategy

  • The fund invests in single projects as well as operating companies.
  • Jointly Axxeltrova and the fund has deep sector experience stretching back for decades and has executed transactions in multiple countries.
  • Our approach is focused on adding value and minimising risk.
  • Fragmented digital infrastructure market ripe for consolidation as large financial investors and large technology industry players are looking to buy scaled asset portfolios in operation.
  • Our “industrial” approach adds real value and minimises risk.
  • Specialist technical and operational knowledge.
  • Focus on risk management and downside protection through careful contracting and operational management.
  • Returns driven by creation of intrinsic asset quality, not excessive financial leverage. Digital infrastructure offers higher returns than traditional infrastructure and much lower risk than venture capital