On June 18, 2024, Fengate Asset Management (“Fengate”) closed a significant transaction to increase its equity stake in eStruxture Data Centers (“eStruxture”), marking the largest-ever deal in Canada’s data center sector with a transaction value of $1.8 billion.
The continuation vehicle funding was co-led by institutional secondary investors Partners Group and Pantheon, which together contributed approximately $1 billion in newly-raised capital. Additional capital was injected in eStruxture by Fengate on behalf of Fengate Infrastructure Fund III, Fengate Infrastructure Fund IV and their affiliated entities, including the Labourers’ Pension Fund of Central and Eastern Canada (LiUNA), and Jonathan Wener along with the Wener Family Office. eStruxture’s founder Todd Coleman and the management team also reinvested a significant portion of their holdings in the company.
The deal solidifies eStruxture’s growth trajectory and underscores investor confidence in the Canadian data infrastructure space.
Stikeman Elliott LLP acted as counsel to Fengate. The legal team included Warren Katz, Barbara Sheng, Fabian Firas Bargout, David Primeau, Pierre-Olivier Gagné-Corriveau, Sarah-Li Grondin (M&A); Michael Kilby, Peter Flynn, Irma Shaboian (Regulatory); Frank Mathieu, Antonin Lapointe (Tax); Stephanie Weschler, and Charif El-Khouri (Employment).
Davies Ward Phillips & Vineberg LLP represented eStruxture with a team led by Elliot Greenstone and included Shayna Goldman, Caroline Parent-Harvey, Mehlka Mustansir, Jordana Khouah and Melissa Lugassy (Corporate/Private Mergers & Acquisitions); Marie-Emmanuelle Vaillancourt and Sammy Cheaib (Tax); Mylène Nadeau, Jason Stapley and Paul Capparelli (Real Estate); Elisa Kearney (Competition); Max Jarvie (IP/Privacy); and Hélène Bussières (Employment).