GCIDigital 9 appoints new investment manager for portfolio wind-down
announced the appointment of InfraRed Capital Partners as its new investment manager and alternative investment fund manager (AIFM) on Friday, overseeing the managed wind-down of its portfolio.
The London-listed firm said the appointment was expected to take effect in the fourth quarter, subject to regulatory approvals and third-party consents.
Until then, Triple Point Investment Management would continue managing its portfolio, with InfraRed stepping in to assist on key deliverables under an interim support agreement.
This decision followed a thorough investment management review initiated in March, during which D9's board consulted major shareholders and evaluated several potential management options.
Panmure Liberum provided an independent review, leading to the selection of InfraRed, which the board said would bring extensive experience managing listed infrastructure trusts, including HICL Infrastructure and the Renewables Infrastructure Group, both FTSE 250 constituents.
InfraRed would manage the wind-down of D9's assets, with a focus on maximising shareholder value.
Its expertise in digital infrastructure and track record in asset divestments played a key role in its selection, Digital 9 explained.
The board said it believed InfraRed's knowledge of D9's assets, particularly its stake in Arqiva Group, would enable it to achieve optimal outcomes during the wind-down.
InfraRed would receive a fixed annual fee of £3.75m for the first 36 months, reducing to £1.75m thereafter.
Additionally, the firm had committed to purchasing D9 shares using 10% of its annual fee.
A performance fee structure was also put in place, with InfraRed entitled to a percentage of distributions exceeding £225m.
"We are pleased to welcome InfraRed as D9's new investment manager and look forward to working with the team during the managed wind-down," said chairman Eric Sanderson.
"Sale processes for D9's wholly-owned assets are progressing, albeit at a slower pace than we had anticipated."
At 0956 BST, shares in Digital 9 Infrastructure were up 7.72% at 18.96p.
Reporting by Josh White for Sharecast.com.
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