Stonepeak to acquire Boundary Street Capital to boost credit business
Alternative asset manager Stonepeak has agreed to acquire private credit specialist Boundary Street Capital.
The deal, for an undisclosed amount, will allow Stonepeak, which focuses on infrastructure and real assets, to expand its credit, digital infrastructure and technology investment capabilities.
Boundary Street, which has more than $700m (£547m) in capital commitments, provides flexible capital to lower mid-market technology and telecommunications businesses.
The deal is expected to close in the fourth quarter of the year. With the addition of the new business, Stonepeak will look to offer a more comprehensive set of credit and credit-linked capital solutions to businesses, it said in a statement.
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Jack Howell, co-president of Stonepeak, commented: “We continue to see compelling investment opportunities within the credit space, especially as it relates to digital infrastructure, which has long been one of Stonepeak’s most active sectors. Over the last several years, we’ve made thoughtful investments to further build out our credit platform, including the addition of Michael Leitner as a senior managing director in 2023.
“As we have built out the broader credit organization and successfully deployed capital across the capital stack into world-class infrastructure portfolio companies, the team has continued to excel. The acquisition of Boundary Street is a natural next step in the growth of the firm and the evolution of Stonepeak Credit.”
Stonepeak has approximately $70bn of assets under management, with nine offices across the US, Europe, Asia and the Middle East.
Leitner added: “By combining Stonepeak’s expertise and resources with the Boundary Street team’s complementary experience and skillsets, we will have the ability to broaden our investment aperture and execute more efficiently on the opportunities we’re seeing in AI-driven businesses, including cloud services, enterprise and infrastructure software, and digital services, while bringing a more comprehensive breadth of offerings to our constituent borrowers and limited partners.”
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As private credit has become a more popular asset class with investors, asset managers have sought to expand their capabilities in this segment, with many opting for acquisitions. Previously, companies like BlackRock, Arrow Global and Sienna IM have expanded their private credit businesses through M&A.
