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$32M Stake Boost in DigitalBridge
21 Dec
Summary
- Portolan Capital Management increased its DigitalBridge Group stake significantly.
- The fund purchased nearly 2.4 million shares valued at $32.1 million.
- DigitalBridge focuses on digital infrastructure, including data centers and cell towers.
Portolan Capital Management has significantly expanded its holdings in DigitalBridge Group, a key player in digital infrastructure. The investment firm recently acquired nearly 2.4 million shares, representing an approximate $32.1 million stake as reported in an SEC filing on November 13. This purchase elevates Portolan's total position to about 5.5 million shares, valued at $63.98 million as of September 30.
This strategic acquisition now constitutes 3.5% of Portolan's U.S. equity Assets Under Management (AUM). DigitalBridge specializes in investments and operations across digital infrastructure, encompassing data centers, cell towers, and fiber networks. The company's recent performance shows strong momentum, with fee revenue up 22% year-over-year and fee-related earnings climbing 43% in the third quarter.
While DigitalBridge shares have shown resilience, outperforming the S&P 500 over the past year, this investment is viewed as a long-term play on the structural growth of digital infrastructure. The recurring revenue models and AI-driven demand for services like data centers suggest a potential for compounding value, even amid market volatility.
