Private credit financing has come to play a key role in powering the build out of AI and communications digital infrastructure. Although it shares similarities with investments in traditional infrastructure projects, the field is relatively new, and the playbook is still being written by firms such as Stonepeak.
Stonepeak Credit Partner and Managing Director Rashad Kawmy walks us through the nuances that he and his firm consider while investing in digital infrastructure.
LFI: Relative to corporate direct lending, how does underwriting and structuring debt investments in digital infrastructure differ?
Kawmy: Digital infrastructure incorporates the core tenets of cash flow-focused corporate direct lending and adds to it a deep understanding of the underlying collateral value. Given the complexity associated with digital infrastructure assets, underwriting requires drilling down into the technical details of the asset base to understand the quality of the borrower profile…
