(Bloomberg) — Bain Capital is contemplating bringing recent backers into Chindata Group Holdings, folks acquainted with the matter mentioned, permitting it to lift money and preserve increasing the information heart firm.
The US-based funding fund is working with advisers to search out companions in a few of the information facilities, the folks mentioned, asking to not be recognized as a result of the matter is non-public. Bain plans to promote possession rights for the belongings to assist lighten its steadiness sheet, whereas charging upkeep and operation charges, one of many folks mentioned.
After taking Chindata non-public solely final yr in a deal price about $3.2 billion, Bain is gauging demand earlier than deciding on the ultimate dimension and different particulars surrounding a possible transaction, the folks mentioned.
Based in 2015, Chindata runs what it calls hyperscale information facilities in China’s main financial facilities: Better Beijing, the Yangtze River Delta round Shanghai and Better Bay Space within the nation’s south. Chindata additionally has operations in India, Malaysia and Thailand, its web site shows.
Potential traders have proven preliminary curiosity in a few of the firm’s belongings, however concerns are preliminary and no remaining choices have been made, the folks mentioned.
Bain might additionally resolve to distribute a few of the money it would elevate to its traders by way of dividends, one of many folks mentioned. Based in 1984, Bain invests in asset courses reminiscent of non-public fairness, credit score, public fairness, enterprise capital and actual property. It manages about $180 billion in whole belongings.
A consultant for Bain declined to remark.
Chindata’s mainland China belongings account for greater than 90% of its income, in keeping with its monetary outcomes. ByteDance Ltd., famend for its video-sharing platforms TikTok and Douyin, is a key consumer.
Chindata is anticipated to generate about $600 million in earnings earlier than curiosity, tax, depreciation and amortization this yr, one of many folks mentioned.
Knowledge facilities have change into sizzling belongings, not least as a result of they’re seen to have secure returns and good development prospects because the world turns into ever extra reliant on know-how. GDS Holdings Ltd. earlier this week agreed to promote a stake in its information heart enterprise exterior of China to a bunch of other asset managers that features Hillhouse Funding and Boyu Capital for $587 million.
