Aware Super surfs AI wave with investment into leading European fibre platform

The deal was part of a €2.1 billion equity recapitalisation via a vehicle led by global infrastructure and real assets manager Stonepeak, anchored by Mercer and Aware Super, and direct investments from the Investment Management Corporation of Ontario (“IMCO”) and APG Asset Management (“APG”).

euNetworks builds and invests in city and long haul fibre networks to connect key European data centres and data hubs.

It owns and operates deep fibre networks in 18 cities, as well as a highly differentiated long haul network that spans 45,000 route kilometres across 17 countries. With its focus on fibre-based network connectivity, euNetworks invests in developments to continue to create unique and diverse network routes between key sites for its customers - from hyperscalers, cloud service providers, data centre operators, wholesale providers, mobile operators as well as high-bandwidth users in segments spanning finance, media, content and enterprise. 

euNetworks leads the data centre connectivity market in Europe, directly connecting more than 542 data centres today, and is well positioned to continue advancing its leadership position in the rapidly evolving connectivity and bandwidth infrastructure space as data centre needs continue to grow.  

Aware Super Head of Infrastructure Mark Hector said euNetworks was an attractive asset due to its unique duct and fibre footprint and the highest number of ‘On-Net’ data centres relative to European peers.

“These differentiating characteristics have contributed to euNetworks’ historical growth and will enable it to capture the strong industry tailwinds arising out of the acceleration in AI innovation and adoption,” he said. 

He added Aware Super Portfolio Manager – Infrastructure, Katya Romashkan, will have a seat on the board of euNetworks. 

Ms Romashkan, who joined the Australian super fund in 2023, said euNetworks was a strong first step for expanding the Fund’s digital infrastructure portfolio into new markets. 

“This opportunity aligns well with our investment thesis. We can directly invest to lower overall fund costs for members, it has a strong return profile, and we are also able to actively manage our members’ interests through our role in the company’s governance,” she said.

Aware Super Head of International and Deputy CIO Damien Webb said: “Today’s announcement is the first infrastructure deal originated out of our UK office. It highlights how our on-the-ground presence in London has helped facilitate a new pipeline of assets and provided us with important opportunities to deepen relationships with leading like-minded investors such as Stonepeak. The team is primed to make further investments in the coming year in infrastructure and also in property and private equity.” 

Kevin Dean, Interim Chief Executive of euNetworks, said: “Our successful debt refinancing and equity recapitalisation underscores the robust value proposition and fundamental infrastructure delivered by euNetworks. We’ve had a fantastic partnership with Stonepeak and IMCO since 2018 along with our other investors, and we extend our gratitude to them for their unwavering support. The combination of Stonepeak, IMCO, APG, Mercer and Aware Super coming together as the new euNetworks represents a very strong opportunity for our customers, our people, our partners and the communities in which we operate. We’re very proud of what we’ve achieved and are excited for the future, continuing to construct and deliver Europe’s future critical infrastructure with our customers and our long-term committed investors.”

Cyrus Gentry, Managing Director at Stonepeak, said: “Since 2018, we have partnered with an industry-leading platform in euNetworks, which is leading the way in sustainably developing the next generation of essential bandwidth infrastructure in Europe. We’d like to thank the entire management team for their significant contributions during this period – particularly Brady Rafuse and Paula Cogan, who have led the business through many phases of its evolution. We look forward to stewarding the next chapter of euNetworks’ growth alongside our new partners.”

Media enquiries:

Sara Bradford, External Affairs, 0478405382, media@aware.com.au

About us:

Aware Super is one of Australia’s largest profit-to-member superannuation funds, investing more than $180 billion (as of August 2024) around the world on behalf of our 1.1 million members. We strive to deliver strong long-term returns for our members and the help, guidance and advice they need to prepare for and enjoy their best possible retirement.

Visit aware.com.au