DigitalBridge - PTC 2023 - Inaugural Keynote
DigitalBridge - PTC 2023 - Inaugural Keynote
DigitalBridge - PTC 2023 - Inaugural Keynote
CENTER LANDSCAPE
January 2023
Marc Ganzi
Chief Executive Officer, DigitalBridge
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DISCLAIMER
FORWARD LOOKING STATEMENTS
SOME OF THE STATEMENTS CONTAINED IN THIS PRESENTATION CONSTITUTE FORWARD-LOOKING STATEMENTS WITHIN THE MEANING OF THE FEDERAL SECURITIES LAWS. FORWARD-LOOKING STATEMENTS RELATE TO EXPECTATIONS, BELIEFS,
PROJECTIONS, FUTURE PLANS AND STRATEGIES, ANTICIPATED EVENTS OR TRENDS AND SIMILAR EXPRESSIONS CONCERNING MATTERS THAT ARE NOT HISTORICAL FACTS. IN SOME CASES, YOU CAN IDENTIFY FORWARD-LOOKING STATEMENTS BY THE
USE OF FORWARD-LOOKING TERMINOLOGY SUCH AS “MAY,” “WILL,” “SHOULD,” “EXPECTS,” “INTENDS,” “PLANS,” “ANTICIPATES,” “BELIEVES,” “ESTIMATES,” “PREDICTS,” OR “POTENTIAL” OR THE NEGATIVE OF THESE WORDS AND PHRASES OR
SIMILAR WORDS OR PHRASES WHICH ARE PREDICTIONS OF OR INDICATE FUTURE EVENTS OR TRENDS AND WHICH DO NOT RELATE SOLELY TO HISTORICAL MATTERS. YOU CAN ALSO IDENTIFY FORWARD-LOOKING STATEMENTS BY DISCUSSIONS OF
STRATEGY, PLANS OR INTENTIONS.
THE FORWARD-LOOKING STATEMENTS CONTAINED IN THIS PRESENTATION REFLECT OUR CURRENT VIEWS ABOUT FUTURE EVENTS AND ARE SUBJECT TO NUMEROUS KNOWN AND UNKNOWN RISKS, UNCERTAINTIES, ASSUMPTIONS AND CHANGES IN
CIRCUMSTANCES, MANY OF WHICH ARE BEYOND OUR CONTROL, WHICH MAY CAUSE OUR ACTUAL RESULTS TO DIFFER SIGNIFICANTLY FROM THOSE EXPRESSED IN ANY FORWARD-LOOKING STATEMENT. STATEMENTS REGARDING THE FOLLOWING
SUBJECTS, AMONG OTHERS, RELATED TO DIGITALBRIDGE GROUP, INC. (“DIGITALBRIDGE”), AFFILIATES THEREOF, INVESTMENT VEHICLES MANAGED BY ANY OF THE FOREGOING OR PORTFOLIO COMPANIES THEREOF (COLLECTIVELY, THE
“DIGITALBRIDGE GROUP”), MAY BE FORWARD-LOOKING: THE USE OF PROCEEDS FROM OUR PUBLIC AND PRIVATE OFFERINGS (AS THE CASE MAY BE); OUR BUSINESS AND INVESTMENT STRATEGY; OUR PROJECTED OPERATING RESULTS; OUR ABILITY
TO OBTAIN FINANCING ARRANGEMENTS; FINANCING AND ADVANCE RATES FOR OUR TARGET ASSETS; OUR EXPECTED LEVERAGE; GENERAL VOLATILITY OF THE SECURITIES MARKETS IN WHICH WE INVEST; OUR EXPECTED INVESTMENTS; EFFECTS OF
HEDGING INSTRUMENTS ON OUR ASSETS OR TARGET ASSETS; RATES OF LEASING AND OCCUPANCY RATES ON OUR ASSETS OR TARGET ASSETS; THE DEGREE TO WHICH OUR HEDGING STRATEGIES MAY OR MAY NOT PROTECT US FROM INTEREST
RATE VOLATILITY; LIQUIDITY OF OUR ASSETS OR TARGET ASSETS; IMPACT OF CHANGES IN GOVERNMENTAL REGULATIONS, TAX LAW AND RATES, AND SIMILAR MATTERS; AVAILABILITY OF INVESTMENT OPPORTUNITIES; AVAILABILITY OF QUALIFIED
PERSONNEL; ESTIMATES RELATING TO OUR ABILITY TO MAKE DISTRIBUTIONS; OUR UNDERSTANDING OF OUR COMPETITION; AND MARKET TRENDS IN OUR INDUSTRY, INTEREST RATES, REAL ESTATE VALUES, THE DEBT SECURITIES MARKETS OR THE
GENERAL ECONOMY.
WHILE FORWARD-LOOKING STATEMENTS REFLECT OUR GOOD FAITH BELIEFS, ASSUMPTIONS AND EXPECTATIONS, THEY ARE NOT GUARANTEES OF FUTURE PERFORMANCE. FURTHERMORE, WE DISCLAIM ANY OBLIGATION TO PUBLICLY UPDATE OR
REVISE ANY FORWARD-LOOKING STATEMENT TO REFLECT CHANGES IN UNDERLYING ASSUMPTIONS OR FACTORS, NEW INFORMATION, DATA OR METHODS, FUTURE EVENTS OR OTHER CHANGES.
DISCLAIMERS
THIS CONFIDENTIAL DOCUMENT IS FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSTITUTE AN OFFER TO SELL OR A SOLICITATION OF AN OFFER TO BUY ANY SECURITIES, INCLUDING SECURITIES OF DIGITALBRIDGE OR PARTNERSHIP
INTERESTS OF ANY INVESTMENT VEHICLE; THE INFORMATION HEREIN HAS BEEN PREPARED SOLELY TO PROVIDE A GENERAL OVERVIEW OF THE DIGITALBRIDGE GROUP AND THE DIGITAL INFRASTRUCTURE SECTOR AND/OR SUB-SECTORS THEREOF.
NO MEMBER OF THE DIGITALBRIDGE GROUP SHALL HAVE ANY LIABILITY, CONTINGENT OR OTHERWISE, TO AN INVESTOR OR THIRD PARTIES, OR ANY RESPONSIBILITY WHATSOEVER, FOR THE CORRECTNESS, QUALITY, ACCURACY, PRICING, RELIABILITY,
PERFORMANCE OR COMPLETENESS OF THE DATA OR INFORMATION PROVIDED HEREIN OR FOR ANY OTHER ASPECT OF THE PERFORMANCE OF THESE MATERIALS, AND NOTHING CONTAINED HEREIN SHALL BE RELIED UPON AS A PROMISE OR
REPRESENTATION WHETHER AS TO PAST OR FUTURE PERFORMANCE OF ANY MEMBER OF THE DIGITALBRIDGE GROUP. THIS MATERIAL INCLUDES ESTIMATES AND PROJECTIONS AND INVOLVES SIGNIFICANT ELEMENTS OF SUBJECTIVE JUDGMENT
AND ANALYSIS. NO REPRESENTATIONS ARE MADE AS TO THE ACCURACY OF SUCH ESTIMATES OR PROJECTIONS OR THAT ALL ASSUMPTIONS RELATING TO SUCH ESTIMATES OR PROJECTIONS HAVE BEEN CONSIDERED OR STATED OR THAT SUCH
PROJECTIONS WILL BE REALIZED. IN NO EVENT WILL ANY MEMBER OF THE DIGITALBRIDGE GROUP BE LIABLE FOR ANY SPECIAL, INDIRECT, INCIDENTAL OR CONSEQUENTIAL DAMAGES WHICH MAY BE INCURRED OR EXPERIENCED ON ACCOUNT OF
ANY INVESTOR OR OTHER THIRD PARTY USING THE INFORMATION PROVIDED HEREIN, EVEN IF DIGITALBRIDGE HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES.
THE INFORMATION IN THIS DOCUMENT IS FURNISHED ON A CONFIDENTIAL BASIS EXCLUSIVELY FOR YOUR USE AND RETENTION. EACH PERSON WHO HAS RECEIVED A COPY OF ANY SUCH INFORMATION AGREES (I) NOT TO REPRODUCE OR DISTRIBUTE
ANY INFORMATION, IN WHOLE OR IN PART, (II) TO RETURN ALL INFORMATION RECEIVED UPON OUR REQUEST AND (III) TO MAINTAIN THE CONFIDENTIALITY OF THE INFORMATION AND NOT TO DISCLOSE ANY SUCH INFORMATION TO ANY OTHER PARTY.
THIS PRESENTATION CONTAINS STATISTICS AND OTHER DATA THAT HAS BEEN OBTAINED FROM OR COMPILED FROM INFORMATION AVAILABLE BY THIRD-PARTY SERVICE PROVIDERS. WE HAVE NOT INDEPENDENTLY VERIFIED SUCH STATISTICS OR
DATA.
FORECASTS BY THEIR NATURE ARE INHERENTLY UNCERTAIN AND ARE SUBJECT TO NUMEROUS RISKS. THIS MAY BE MORE LIKELY WITH RESPECT TO INVESTMENTS THAT HAVE BEEN HELD FOR A SHORT PERIOD OF TIME. PAST PERFORMANCE IS NOT
NECESSARILY INDICATIVE OF FUTURE RESULTS.
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TABLE OF CONTENTS
1
SECTION
2
SECTION
3
SECTION
3
A LEADING GLOBAL DIGITAL
INFRASTRUCTURE FIRM
INVESTING ACROSS THE DIGITAL ECOSYSTEM
DigitalBridge is a leading global-scale infrastructure partner to the digital
economy investing across five key verticals: data centers, cell towers, fiber
DigitalBridge’s investment strategy seeks to networks, small cells, and edge infrastructure
provide investors exposure to a portfolio of high
growth, resilient businesses enabling the next
generation of mobile and internet connectivity
$60B+ 27 100+ 25+
Digital Assets Under Digital Portfolio Digital Infrastructure Years of Experience
Management1 Companies2 Professionals3
Data Centers
North America North America Canada Canada, U.S. and U.K. U.K. U.K. Finland
EXITED
Hyper-
Edge Infrastructure Converged United States United States United States North America, Europe U.K. Europe
Cell Towers Belgium
Digital
Infrastructure GD TOWERS
United States United States United States Europe Europe Europe Asia
PENDING EXITED
Mexico Asia
Brazil
Chile
(1) AUM as of December 6. 2022, and inclusive of portfolio companies in which DigitalBridge Group, Inc. has invested from its balance sheet or
for which a subsidiary of DigitalBridge Group, Inc. provides investment advisory services (collectively, “DBRG Owned and Advised Companies”).
(2) Digital Portfolio Companies as of December 2022, and inclusive of DBRG Owned and Advised Companies. Acquisitions of AIMS and GD
Towers have been agreed in definitive purchase agreements, but the transactions remain subject to customary closing conditions; there can be 4
no assurance these transactions will reach financial close. (3) Digital Infrastructure Professionals as of September 30, 2022.
A NEW WAY TO INVEST IN DIGITAL INFRASTRUCTURE
‘Full stack’ approach to Digital Infrastructure gives DigitalBridge the ability to invest, operate and seeking to
capitalize on $400+ billion of annual global capex that enables us to pair capital to the right risk-adjusted
opportunity. Responsibly stewarding capital on behalf of our limited partners and shareholders is our mission.
Sourcing
Cross-Pollination
Market Intelligence
“Eyes and Ears”
DBP I
Talent Acquisition
5
THE DIGITAL INFRASTRUCTURE SPECIALISTS
The DigitalBridge team has a 25+ year track record of successfully building businesses in the digital infrastructure sector.
Focused specialization creates durable competitive advantages that generate alpha for our portfolio companies and investors
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EXPERIENCED TEAM DEDICATED TO DIGITAL INFRA 100+
Active infrastructure specialists Dedicated
Digital Infrastructure
Investment
EXECUTIVE
Marc Ganzi Ben Jenkins Jacky Wu Liam Stewart Professionals
LEADERSHIP
Chief Executive Officer President and CIO Chief Financial Officer Chief Operating Officer
Rommel Marseille Bernardo Vargas Gibsone Kristen Whealon Severin White Jonathan Adelstein
Leslie Golden Warren Roll Geneviève Maltais-Boisvert Geoff Goldschein Sadiq Malik James Burke Tae Ahn
Managing Director Managing Director Managing Director Interim Chief Head of Public Managing Director,
Global Head of Capital Managing Director Managing Director Managing Director, Managing Director Head of Latin America Principal Managing Director
General Counsel Head of North American Head Asia Capital Formation Compliance Officer Investor Relations Head of Global Policy
Formation and Investor Relations Capital Formation and Public Investment
William Hughes, III Alexandre Villela Alan Bezoza Christopher Falzon Scott McBride Hayden Boucher Chae Hart Manjari Govada Wilson Chung Matty Yohannan
Managing Director Senior Vice President Senior Vice President Managing Director Principal Principal Principal Principal Principal Chief of Staff
Liquid Strategies Ventures Liquid Strategies North America Capital
Formation
DATA CENTER TEAM TOWER TEAM FIBER & SMALL CELLS TEAM
GLOBAL
INDUSTRY NORTH AMERICA SOUTH AMERICA EUROPE NORTH AMERICA EUROPE SOUTH AMERICA NORTH AMERICA
LEADERS & Sureel Choksi Marcos Peigo Josh Joshi Alex Gellman Daniel Seiner
Graham Payne Michael Finley Steve Smith Dan Armstrong
LOCAL EXPERTS Senior Advisor Senior Advisor Operating Partner Senior Advisor Senior Advisor Senior Advisor Senior Advisor Senior Advisor Senior Advisor
Board Member of Zayo & Scala; CEO of Scala Data Chairman of AtlasEdge Board Member of Highline CEO of Andean Telecom Partners
Executive Chairman CEO of Boingo CEO of Zayo Group CEO of Beanfield
President and CEO of Vantage Centers and FreshWave; CEO of of Freshwave Jose Sola Technologies
Brokaw Price Giuliano Di Vitantonio Vertical Bridge
Senior Advisor Senior Advisor
Operating Partner GLOBAL ASIA CEO of Mexico Tower Partners Richard Coyle David Pistacchio Murray Case
CEO of AtlasEdge
Raul Martynek Michael Foust Tim Brazy Suresh Sidu Senior Advisor Operating Partner Operating Partner
Fernando Viotti
Senior Advisor Senior Advisor Senior Advisor Senior Advisor CEO of ExteNet Systems Chairman of Beanfield; Chairman of Scala
Chairman of Databank CEO of Landmark Dividend CEO of EdgePoint Senior Advisor
CEO of DataBank Board Member of Aptum Data Centers
& Vantage CEO of Highline
and Zayo
JP Rosato
Operating Partner
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WE ARE BUSINESS BUILDERS EXECUTING PLAYBOOKS THAT 1 2
HAVE SERVED OUR INVESTORS THROUGH MARKET CYCLES
Particularly during periods of market dislocation our operating DNA sets us apart…this is where we thrive! 3
1 2 3
PHASE 1: ESTABLISH PLATFORM PHASE 2: TRANSFORM AND SCALE PHASE 3: FOLLOW THE LOGOS
Identify and acquire the right Pair capital and operating expertise Customer-driven investment
platform and team to capitalize on with the right strategic business plan framework that allocates capital and
unique digital infrastructure built around both greenfield and resources to support network growth
opportunities strategic M&A – Build & Buy
The DigitalBridge Platform Strategy leverages playbooks to extend the global-reach businesses growing
EBITDA through portfolio expansion
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STRONG ASSET MANAGEMENT THROUGH THE
CYCLE…KEEP DELIVERING WE BENEFIT FROM
CONSERVATIVE
Our ability to deliver great performance across our global portfolio is the most PORTFOLIO DEBT
fundamental driver of our business… METRICS
Loan to Value
41%
3
% Fixed
75%
4
8.0 yrs
4,5
26 Edge U.S.
10 Markets served 3 Markets served IRELAND
U.K
. markets served
NETHERLANDS
Note: Past performance is not indicative of future results or indicative of how other DigitalBridge investments will perform. Please see slide 2 for additional information. 10
2
CASE STUDY
SWITCH - OUR NEWEST PLATFORM,
POISED TO SCALE
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SWITCH OVERVIEW 500MW
In place capacity
Switch Provides the High Quality DCs to Support
Enterprise and Private Cloud
Significant Runway
Expansion capacity of 11.2M sqf, 1GW of Potential
Pyramid - Grand
Rapids, MI
Specialized Strategy
Patented facility design, unique network core Strategy
Citadel - Tahoe Core - Las Vegas, NV
Reno, NV
Keep - Atlanta, GA
100% Renewable Energy
Customer and Investor Priority
Rock - Austin, TX
Powered by
0% Downtime Since Inception
Industry leading downtime with higher levels of redundancy
Renewables and backup
Since 2016 Current Data Centers
Future Data Centers
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COMPELLING INVESTMENT BACKDROP
Combination of strong demand outlook, a pricing environment that is inflecting higher, and a massive runway for
growth position Switch to succeed
STRONG FORECASTED GROWTH PRICING HAS INFLECTED HIGHER(2) SIGNIFICANT RUNWAY (3)
Global Data Infrastructure Revenue(1) (in Millions of Square Feet)
($ in Billions) Inflection Point
$798B
$140
-12% +6% +26%
% +220%
: 26 $130 22.5
AGR
C
4.6
$120
16.3
$396B $110
11.2
$100 17.9
$90
5.1
$80
2023E 2024E 2025E 2026E 2016 2017 2018 2019 2020 2021 H1 2022 Other DC Deals (4) Switch
1. Source: Cowen and Company Research Report, data as of December 2021, Altman Solon Market Research & Analysis
Current Gross Capacity Additional Capacity
2. Source: Cowen and Company Research Report. CBRE North American Data Center Trend H1 2022; Average monthly asking rate for a 250-500kW requirement across primary markets, which includes Northern Virginia, Dallas, Silicon Valley, Chicago, Phoenix,
New York Tri-State and Atlanta
3. There can be no assurance Switch will achieve growth.
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4. Represents the aggregate Gross Available and Additional Capacity for CoreSite, CyrusOne and QTS at the time of their respective acquisitions
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15
WE’VE DONE THIS BEFORE:
VANTAGE - A LEADING GLOBAL HYPERSCALE PLATFORM
After partnering with DigitalBridge, Vantage has built a state-of-the-art data center platform serving hyperscalers,
cloud providers and large enterprises across 17 markets globally
North America
Montreal, Canada
APAC
Quebec City, Canada
Quincy, WA
Tokyo, Japan
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Santa Clara, CA Osaka, Japan
Northern VA
Phoenix, AZ On Lok, Hong Kong
Fo Tan, Hong Kong
YEARS Kwai Chung, Hong Kong
Tsuen Wan West, Hong Kong
Europe
Frankfurt, Germany Cyberjaya, Malaysia
U.S. Cardiff, UK Berlin, Germany
Warsaw, Poland
Zurich, Switzerland
Milan, Italy Melbourne, Australia
2016 2022
2 3 66 MW ~7x 5 25 1.5+ GW
US Markets
Served
Campuses In-Place Capacity EBITDA Growth Continents Campuses Potential Capacity
Note: Past performance is not indicative of future results or indicative of how other DigitalBridge investments will perform. Please see slide 2 for additional information.
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3 AN EVOLVING DATA
CENTER ECOSYSTEM
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WHAT IS TOP OF MIND FOR DATA CENTER COMPANIES?
Cloud applications, growing enterprise outsourcing and the accelerating pace of data creation are creating
substantial storage and computing demand that cannot be met by today’s global infrastructure
Impact of Macro Increasing complexity of Increased demand for Explosive growth of data Energy constraints and
Conditions on Supply and the cloud requiring hybrid latency-sensitive data is and internet traffic driving enhanced focus on ESG
Demand solutions approach driving Edge growth record demand considerations
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HOW DIGITALBRIDGE MEETS THE SECTOR CHALLENGES –
DEMAND ECO-SYSTEM EXPLAINED
New data center types are emerging to serve the growing demands of new applications and services; DigitalBridge has
built exposure to the fastest growing segments of the market
Hybrid Cloud
Enterprise Applications
Outsourcing of mission-critical workloads
for large / Fortune 1000 companies
Enterprise /
Private Cloud
PENDING
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ESTABLISHING A NEW, COMPLEMENTARY
PLATFORM IN DBRG’S ECOSYSTEM
Our Data Center strategy is built to serve not only specific sectors but an integrated hybrid cloud offering
Private Cloud
PENDING
Hybrid Cloud
Edge Scale
Public Cloud
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FUTURE OF
MOBILITY
IMMERSIVE REALITY
DigitalBridge is ready and capable to meet the TECHNOLOGIES
growing demand for global connectivity through our
presence in primary digital infrastructure platforms of SMART
data centers, towers, fiber networks, small cell MANUFACTURING
networks and edge infrastructures.
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