Welcome back to the Alt Goes Mainstream podcast.
Today’s episode brings infrastructure investing to life — literally.
We sat down in and walked through one of Stonepeak’s data center assets with Managing Director and CEO of SP+ INFRA, Cyrus Gentry.
Cyrus has played an integral role in Stonepeak’s rapid ascent as a firm and the growth of its wealth solutions business, Stonepeak+, joining early in the firm’s history and helping the firm grow to approximately $80B in AUM.
Cyrus brings a private equity perspective to infrastructure investing. Prior to Stonepeak, he held investing roles at BC Partners and Advent International. He also serves as one of the Church Commissioners for the Church of England, who hold responsibility for managing the Church’s £11.1B permanent endowment fund.
Cyrus and I had a fascinating and thought-provoking discussion about infrastructure investing and why and how it can fit within a wealth client’s portfolio. We covered:
- How Cyrus’ background in private equity investing has transferred over to investing in infrastructure.
- The opportunity and risks of data center investing.
- The risk of overbuilding in data centers.
- Why location matters for data centers.
- What makes interconnection data centers attractive data center assets.
- How Cyrus and Stonepeak have built their wealth solutions business and how they’ve endeavored to be different in how they’ve built out the business.
- How Stonepeak’s wealth business is a reflection of the firm’s DNA.
Thanks Cyrus for coming on the show to share your expertise, wisdom, and passion for infrastructure investing and working with the wealth channel.
Show Notes
00:00 Introduction and Sponsor Message
01:57 Welcome to the Alt Goes Mainstream Podcast
02:04 Introducing Cyrus Gentry and Stonepeak
00:00 Introduction and Sponsor Message
03:25 Cyrus's Journey from Private Equity to Infrastructure
04:56 Understanding Infrastructure Investing
06:10 The Importance of Moats in Infrastructure
06:57 Differences Between Private Equity and Infrastructure
07:38 Stonepeak's Growth and Strategy
09:06 Specialization in Infrastructure Investment
09:54 Balancing Long-Term Horizons with Industry Changes
11:15 The Role of Data Centers in Modern Life
14:43 Investment Perspectives on Connectivity
15:55 Challenges in Infrastructure Investing
17:10 Executing Value Creation Plans
19:06 Structured Capital in Infrastructure Deals
21:17 Trends and Scale in Infrastructure Investment
22:43 Patience and Discipline in Investment
23:34 Global Expansion and Strategy Diversification
24:09 Collaborative Approach with Corporates
24:42 Capital and Problem Solving
25:02 Building Stonepeak Wealth Solutions
25:30 Infrastructure Asset Class Benefits
25:47 Strategic Planning and Vision
26:05 Creation of Stonepeak-Plus
26:15 Early Discussions on Wealth Business
27:32 Team Dynamics and Entrepreneurial DNA
27:59 Understanding the Wealth Market
28:56 Educating Investors on Infrastructure
29:50 Allocating Infrastructure in Portfolios
30:07 Global Perspectives on Infrastructure
32:18 Learning from Institutional Investors
33:19 Common Questions from Wealth Channel
34:02 Mega Trends and Investment Strategies
34:46 Core, Core Plus, and Value Add Assets
36:12 AI and Data Centers
40:20 Power and Energy in Data Centers
42:34 Local and Global Investment Strategies
44:12 Geopolitical Risks and Infrastructure
46:36 Lessons Learned and Future Outlook
Editing and post-production work for this episode was provided by The Podcast Consultant.
A word from AGM podcast sponsor, Ultimus Fund Solutions
This episode of Alt Goes Mainstream is brought to you by Ultimus Fund Solutions, a leading full-service fund administrator for asset managers in private and public markets. As private markets continue to move into the mainstream, the industry requires infrastructure solutions that help funds and investors keep pace. In an increasingly sophisticated financial marketplace, investment managers must navigate a growing array of challenges: elaborate fund structures, specialized strategies, evolving compliance requirements, a growing need for sophisticated reporting, and intensifying demands for transparency.
To assist with these challenging opportunities, more and more fund sponsors and asset managers are turning to Ultimus, a leading service provider that blends high tech and high touch in unique and customized fund administration and middle office solutions for a diverse and growing universe of over 450 clients and 1,800 funds, representing $500 billion assets under administration, all handled by a team of over 1,000 professionals. Ultimus offers a wide range of capabilities across registered funds, private funds and public plans, as well as outsourced middle office services. Delivering operational excellence, Ultimus helps firms manage the ever-changing regulatory environment while meeting the needs of their institutional and retail investors. Ultimus provides comprehensive operational support and fund governance services to help managers successfully launch retail alternative products.
Visit www.ultimusfundsolutions.com to learn more about Ultimus’ technology enhanced services and solutions or contact Ultimus Executive Vice President of Business Development Gary Harris on email at gharris@ultimusfundsolutions.com.
We thank Ultimus for their support of alts going mainstream.
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