CHIEF COMMERCIAL OFFICER & PRINCIPAL

As an independent investment manager focused on the creation of new and the expansion of existing infrastructure assets, AVAIO Digital Partners (ADP) takes a value-added approach to creating and investing in de-risked, mid-to-late stage, real asset creation and redevelopment opportunities. The team is composed of both financial and operational executives with substantial experience in investing, developing, constructing, and operating infrastructure assets. They are seeking a Chief Commercial Officer (CCO) & Principal with expertise in the development and commercial transactions of data center real estate with globally hyperscale and cloud platform companies.

 

GO TO MARKET

ADP offers a remarkable advantage both to the CCO as well as the target customer by virtue of their well thought out strategy, which has the benefit of hindsight of infrastructure development in other vertical markets. As a private investment organization with massive infrastructure development and construction expertise, ADP approaches the market with no constraints or definitions imposed on them, the way a PE, Infrastructure, or REIT might. They enter the data center infrastructure market with a strategic value proposition that anticipates requirements for solutions every step of the way.

All their sites are greenfield which offers more opportunity to create value while lowering risk. This allows ADP a freedom to be adaptable and create value where the specific opportunity requires. They can start conversations and create alliances at an asset level, with a country or region or municipality, with landowners, construction companies, utilities, energy, power, and/or connectivity interests. This extent and multitude of perspectives defines the value the team’s history in proving out this model. They are unencumbered and prepared to create solutions and capitalize on situations where others see obstacles.

 

COMPETITIVE ADVANTAGE

Platform Thesis

• Global demand from highly creditworthy end users for data center capacity is growing rapidly
• “Hyperscale” (large, 25+ MW, massively scalable) data center supply is lagging demand
• Construction of new data centers offers highly attractive creation multiples (sub 10x EBITDA) versus trading and sale value of operating data centers (20x+ EBITDA), providing the opportunity to ample capital appreciation
• The ADP team brings over 100 years of experience developing, construction, and operating sustainable infrastructure assets

Phased Low-Risk Approach – A milestone-based approach to project development and de risking –

• ADP’s phased approach to data center creation means comparatively small amounts of capital are spent on site diligence, exclusivity, and development (~$1.5mm on sites per ~$250 million data center site)
• New data centers are only put into construction, and significant capital invested, once long-term leases with strong customers have been executed.

Project Focus – Build to suit, hyperscale data centers and supporting digital infrastructure.

• >20 Ha, line of sight to 100MW+ in <24 months
• Focused on scalable, campus style development opportunities.
• $100 million to $1.5 billion total project value

Commercial Model – ADP offers hyperscale customers attractive and flexible commercial structures.

• Pre agreed lease terms prior to material investment with buyout rights.
• Strong focus on project sustainability and resiliency

Capital Backing

• $375 million equity commitment from leading global asset manager with over $25 billion in assets under management provides certainty of funding.

 

CHARTER

The charter of the CCO in its simplest terms is to amass, distill, and market ADP’s resources and competitive advantages to sign triple net leases with growing hyperscale and cloud platform organizations seeking additional data center capacity in the form of building, buying, or leasing new facilities in globally diverse geographic locations. ADP has been positioning to secure sites in locations they know are attractive to this target audience. The COO will work in close coordination with the target audience to determine their growth directives and capacity interests and in turn, mobilize resources to develop those locations which facilitate the target audience’s presence in those market faster and with less risk.

This requires an exceptional range of market knowledge from both a supply and demand standpoint. ADP has already created a massive pipeline of prospective project sites. The CCO will marry up their customer demand knowledge and ensure the target audience is aware of the site’s availability, characteristics, and financial advantages. ADP will have conducted the necessary due diligence to determine if the site is suitable from a technical and commercial perspective and when deemed appropriate, move proactively to entitle, permit, and engage necessary power, MEP, & connectivity resources.

 

EXPECTATIONS

The CCO is expected to possess a unique and extensive combination of experiences and skills that can progress, entice, and facilitate sophisticated considerations of ADP’s global offering of sites, financial resources, and infrastructure development resume. At a high level, this will require –

• 10+ years of progressive experience in the commercialization of data center real estate opportunities across a broad set of criteria to include customers, locations, and financial arrangements.
• Self-assured and self-directed professional who is comfortable operating independently in an environment with a modicum of structure and yet has the operational intelligence to collaborate and align visions and resources to mutually successful outcomes.
• Embraces a performance-based work environment where everyone works under the same organizational structure and financial incentives to achieve great outcomes for a broad set of constituents involved.
• As a senior management member of the company, embraces a circumstance of having momentum, funding, and material to work with but excited about the opportunity to mold and create products and services that spark enthusiasm and derive value.
• ADP works for their investors which assumes a responsibility to be as forthright, earnest, honest, and transparent with all parties involved in these deals to ensure value is created and shared.
• Demonstrated ability to engage in meaningful discussions with prospective customers and articulate ADP compelling advantages –
• Highly credentialed partners in the data center market who understand the current base design requirements of the leading data center organizations.
• Backed by a major financial organization which provides more than ample capital to pursue a multitude of deals, structures, and timing.
• 5+ construction sites that could start construction tomorrow and deliver buildings as fast as 6 months, effectively saving a year’s time from a customer doing this on their own.
• Flexibility to offer build-to-suit, full purchase, or wholesale lease.
• History of applying this model to other types of vast, fast growth infrastructure development so they can mobilize quickly and professionally.

 

KEY QUALIFYING CRITERIA

ADP will be evaluating CCO candidates by virtue of the extent of demonstrated experience and characteristics related to the following –

• Build-to-Suit, wholesale lease, and/or data center commercial transaction history.
• Hyperscale and Cloud platform relationship network.
• Market knowledge – domestic and international locations, trends, tendencies, and interests
• Invested environment history, knowledge, and motivations.
• Team player and value creator.

 

WHY CONSIDER THIS OPPORTUNITY WITH AVAIO DIGITAL PARTNERS?

Stage – From an economic perspective, the CCO receives ground floor valuation equity versus an equity position with an already capitalized company where the ability to create value is dramatically minimized.

Impact – While just leaving the starting gates, ADP already has projects to leverage and momentum to build on. From day one, the CCO will be relied upon to make decisions that meaningfully impact how investments create value for all stakeholders.

Financial Strength – The ADP team has gained the confidence of a premier investor to partner with in the digital infrastructure market. This partner is “the platinum card’ in what they do and broadly recognized and respected across the global investment market. 

Culture – ADP’s leadership are eager to share their lean, entrepreneurial, earnest, self-accountable, and outcome-oriented culture with someone who shares these values and is eager to build a company where ‘bad news travels fast.’

Credentials – ADP leadership team brings a remarkable track record of investment and development success to the digital infrastructure market. They have worked together in the past and keenly enjoy solving challenges to exceed performance return expectations.

Focus & Flexibility – ADP structure allows for a clear market investment thesis and yet unencumbered in their ability to pivot to capitalize on strategies which present clear business case propositions with attractive return outcomes.

 

COMPENSATION

Private equity structured compensation package to include a base salary, moderate annual performance compensation, benefits, and substantial long term incentive compensation in the form of participation in the performance of the investments.

 

SEARCH PROCESS

Following a thorough exchange of information relating to company information, resume, and key qualifying criteria, CFS Partners anticipates recommending a short list of candidates to AVAIO Digital Partners for video introductions with the Senior Leadership Team in May 2021. Finalists will be selected and determinations for travel to meet in person will be contingent on Covid related sensitivities and considerations at that time. The selected finalist will be presented with a compelling offer contingent on clean reference and background checks.