Colony Capital, Inc. (NYSE: CLNY), a global investment management firm, has announced it has agreed to terms of a strategic investment in which the affiliates of Wafra Inc. will acquire a minority stake in Digital Colony, the digital investment management division of Colony Capital, the company said.
Upon consummation of the investment, Wafra´s investment will provide Digital Colony with permanent capital to pursue strategic investments across the digital infrastructure ecosystem, including cell towers, data centers, fiber, and small cells. In addition to acquiring a stake in Digital Colony, Wafra will also make capital commitments to Digital Colony´s current and future investment products to support and accelerate the growth of its investment management business.
In total, it is expected that Wafra´s strategic investment will total over USD 400 million in the Digital Colony platform. Colony Capital plans to use the proceeds to (i) invest in high-quality digital infrastructure assets that deliver consistent returns for Colony Capital shareholders and (ii) grow its digital investment management business by extending its equity franchise and launching new investment products.
As a premier private investment firm and a global partner for alternative asset managers across the private equity, real assets, infrastructure and venture capital sectors, Wafra invests in established, industry-leading investment managers with the goal of forming a lasting partnership. Wafra first invested alongside Digital Bridge, a Digital Colony subsidiary, in 2017 and supported Digital Colony´s inaugural USD 4.1 billion Digital Colony Partners I fund — the first of its kind dedicated solely to investing in digital infrastructure.
Colony Capital is a global investment firm with a heritage of identifying and capitalizing on key secular trends in real estate. For more information, visit www.clny.com.
Digital Colony is one of the world´s largest dedicated digital infrastructure investment firms with over USUSD 20 billion in assets under management. For more information, visit www.digitalcolony.com.
Wafra is a global alternative investment platform. Wafra and its affiliates manage assets and commitments of approximately USD 25 billion. For more information visit www.wafra.com.