Marc Ganzi: Yes. So look, it’s kind of the tale of 2 cities, right? I think the high-quality digital infrastructure assets are still hanging in and are holding their value. And I think what you’re seeing is — and when I say high-quality, businesses that have contracted cash flows greater than 5, 10, 15 years that are more than 80% exposed to investment-grade counterparties and businesses that have securitized debt, long-term capital structures that are portable. We proved that in the Wildstone transaction. We proved that out in the DataBank transaction. We had portable capital structures, and we had high-quality assets with long-durated cash flows. I think what you’re also seeing is the tale of the other side of the city, which I sort of telegraphed about 2, 3 years ago, which is you have a series of generalists infra funds that went in, bought a lot of fiber that was facing consumer that did not have long-term contracted cash flows, which we were very clear we were staying away from.
So the last 2 to 3 years, we’ve been focusing on quality, the Deutsche Telekom transaction, Switch, Landmark. These are businesses that have high exposure to investment-grade counterparties and long-term leases, and that’s where we deployed capital. We went left and we played risk off. The rest of the world went right and paid high multiples for residential fiber and other businesses that don’t have long-term cash flows. So we’ve always been very careful to stay away from businesses that have consumer-facing graphics and are built on hope dividends. We don’t invest on hope dividends. It’s just not what we do at DigitalBridge. And so it comes as no surprise in the third quarter and the fourth quarter that both of our funds, DigitalBridge Partners 1 and 2 moved up in value while we saw other counterparties and private equity and other forms of investing in the space, either at par or move down.
And I think that was largely because of our disciplined investment framework, which we continue to execute today. So the setup as we go forward, is really interesting. We think there are good opportunities to play in kind of 3 types of investment opportunities as we form all this new capital. One, we do think there is dislocation. And when there’s dislocation, you can invest, you can take advantage of a re-mark to market. And we’re certainly seeing that in the fiber-to-the-home space, and we think there’s going to be good opportunities to not play in that sector in the mid-20s, but play in that sector back down again in the low teens, if not even single digits. So — we’re looking very carefully at some of those businesses because we think they’re finally reflecting their value.
And maybe that’s the right time to enter fiber to the home or resi fiber. We’ll continue to look at Towers on a global basis. Towers have always held up very strong in these sort of turbulent macro environments on. Got a number of tower deals we’re working on. We still like data centers. We like private cloud. We like what we’re doing at Switch. We certainly like what we’re doing in public cloud or Vantage, and we have numerous data center opportunities to execute in this fund focusing on private and public cloud narratives. Another area that I think that we’re seeing a really good opportunity is in network infrastructure that is based on SaaS models. So software-defined networking businesses that were trading in the mid-30s are now trading back down in the low teens again.
