Kirkland Advises Fengate on Largest Data Center Transaction in Canada
Kirkland & Ellis advised Fengate Asset Management, a leading North American alternative investment manager focused on infrastructure, private equity and real estate strategies, on significantly increasing its equity stake in eStruxture Data Centers with the sector-shaping deal. This builds on the long-standing business partnership through a C$1.8 billion recapitalization transaction, including a continuation fund and a significant parallel investment on behalf of Fengate Infrastructure Fund III, Fengate Infrastructure Fund IV, and their affiliated entities. The deal was announced in June 2024 and the final closing occurred in October 2024.
Fengate’s investment in eStruxture includes newly raised capital from a group of institutional secondary investors. The record-breaking investment is the single largest ever made in the Canadian data center sector and one of the largest privately led Canadian deals of 2024. The investment will provide eStruxture with significant growth equity and enable the expansion of eStruxture's portfolio of 15 facilities to meet the demand for data center capacity.
The Kirkland team included investment funds lawyers Susan Eisenberg, John Senior, Emma Whenham, Rhett McPhie, Ross Greenspan, Ally Relat and Jack Baumruk; corporate lawyers Garrett Lorentz, Ernesto Sanz and Cory Baird; and tax lawyers Andrew Chan and Lee Morlock.
