🎥 Stonepeak's Cyrus Gentry - bringing infrastructure investing to the wealth channel

Welcome back to the Alt Goes Mainstream podcast.Today’s episode brings infrastructure investing to life — literally.We sat down in and walked through one of Stonepeak’s data center assets with Managing Director and CEO of SP+ INFRA, Cyrus Gentry.Cyrus has played an integral role in Stonepeak’s rapid ascent as a firm and the growth of its wealth solutions business, Stonepeak+, joining early in the firm’s history and helping the firm grow to approximately $80B in AUM.Cyrus brings a private equity perspective to infrastructure investing. Prior to Stonepeak, he held investing roles at BC Partners and Advent International. He also serves as one of the Church Commissioners for the Church of England, who hold responsibility for managing the Church’s £11.1B permanent endowment fund.Cyrus and I had a fascinating and thought-provoking discussion about infrastructure investing and why and how it can fit within a wealth client’s portfolio. We covered:* How Cyrus’ background in private equity investing has transferred over to investing in infrastructure.* The opportunity and risks of data center investing.* The risk of overbuilding in data centers.* Why location matters for data centers.* What makes interconnection data centers attractive data center assets.* How Cyrus and Stonepeak have built their wealth solutions business and how they’ve endeavored to be different in how they’ve built out the business.* How Stonepeak’s wealth business is a reflection of the firm’s DNA.Thanks Cyrus for coming on the show to share your expertise, wisdom, and passion for infrastructure investing and working with the wealth channel.Thanks for reading Alt Goes Mainstream! Subscribe for free to receive new posts and support my work - writing and podcasting about the convergence of private markets and private wealth since December 2020.A word from AGM podcast sponsor, Ultimus Fund SolutionsThis episode of Alt Goes Mainstream is brought to you by Ultimus Fund Solutions, a leading full-service fund administrator for asset managers in private and public markets. As private markets continue to move into the mainstream, the industry requires infrastructure solutions that help funds and investors keep pace. In an increasingly sophisticated financial marketplace, investment managers must navigate a growing array of challenges: elaborate fund structures, specialized strategies, evolving compliance requirements, a growing need for sophisticated reporting, and intensifying demands for transparency.To assist with these challenging opportunities, more and more fund sponsors and asset managers are turning to Ultimus, a leading service provider that blends high tech and high touch in unique and customized fund administration and middle office solutions for a diverse and growing universe of over 450 clients and 1,800 funds, representing $500 billion assets under administration, all handled by a team of over 1,000 professionals. Ultimus offers a wide range of capabilities across registered funds, private funds and public plans, as well as outsourced middle office services. Delivering operational excellence, Ultimus helps firms manage the ever-changing regulatory environment while meeting the needs of their institutional and retail investors. Ultimus provides comprehensive operational support and fund governance services to help managers successfully launch retail alternative products.Visit www.ultimusfundsolutions.com to learn more about Ultimus’ technology enhanced services and solutions or contact Ultimus Executive Vice President of Business Development Gary Harris on email at [email protected] thank Ultimus for their support of alts going mainstream.Show Notes00:00 Introduction and Sponsor Message01:57 Welcome to the Alt Goes Mainstream Podcast02:04 Introducing Cyrus Gentry and Stonepeak03:39 Cyrus’s Background in Private Equity04:10 Transition from Private Equity to Infrastructure04:42 Understanding Infrastructure Investing05:33 Key Characteristics of Infrastructure Assets06:28 Defining Moats in Infrastructure07:30 Differences Between Private Equity and Infrastructure08:05 Stonepeak’s Growth and Strategy09:09 Specialization in Infrastructure Sectors10:10 Balancing Long-Term Horizons with Industry Changes11:52 Importance of Data Centers14:09 Consumer Impact of Infrastructure Assets15:26 Investment Perspective on Connectivity16:44 Challenges in Infrastructure Investing19:27 Value Creation in Private Markets19:57 Structured Capital and Deal Flow22:18 Trends and Scale in Infrastructure Investing25:40 Enabling Corporate Growth26:08 Building Wealth Solutions at Stonepeak26:29 Strategic Partnerships and Market Fit27:19 Founding Stonepeak-Plus27:29 Early Discussions on Wealth Business27:52 Top-Down and Bottom-Up Thinking28:57 Team Dynamics and Risk-Taking30:16 Educating Investors on Infrastructure30:36 Infrastructure in Wealth Portfolios31:30 Global Infrastructure Opportunities33:43 Learning from Institutional Allocators34:49 Key Questions from Wealth Channel35:37 Mega Trends and Investment Strategies36:24 Core, Core Plus, and Value Add Assets37:51 AI and Data Center Investments40:09 Interconnection Hubs vs. Co-Location42:47 Power and Data Center Synergy46:35 Navigating Political and Regulatory Risks48:58 Lessons Learned in Infrastructure Investing51:17 The Fundamental Role of InfrastructureEditing and post-production work for this episode was provided by The Podcast Consultant. Join over 14,500 Substack subscribers & followers who are thought leaders and executives from top private markets firms and wealth management like Blackstone, Apollo, Ares, KKR, EQT, Carlyle, Blue Owl, CVC, TPG, Brookfield Oaktree, Vista, Goldman Sachs, J.P. Morgan, BlackRock, Fidelity, iCapital, Franklin Templeton, Nuveen, Hg, Permira, Stonepeak, Hightower, Focus Financial, Cerity Partners, and more. This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit altgoesmainstream.substack.com