Carlyle Group, a Washington-based private equity firm, is preparing to sell its 80% stake in Involta, a data center power and fiber connectivity provider, to EQT Partners. The sale is valued at $2.6 billion, in a deal anticipated to be announced next week. This transaction marks a significant win for Carlyle, delivering a fivefold return on its initial approximately $500 million investment made in 2017.
Involta generates annual earnings before interest, tax, depreciation, and amortization (Ebitda) of about $130 million. The sale price represents a valuation of roughly 20 times Involta's Ebitda, highlighting the strong market appetite for infrastructure assets, particularly those related to data centers. JPMorgan Chase served as the exclusive financial adviser to Carlyle on this transaction.
This sale underscores the booming demand for data center infrastructure, driven by the rapid growth of cloud computing and digital services. Private equity firms and infrastructure funds are increasingly looking to invest in these assets, attracted by their stable, long-term revenue streams and essential role in the digital economy. The high valuation achieved by Carlyle reflects this competitive investment landscape.
