Entrex taps Enclave Capital for financing and acquisition push

Entrex said Oct. 5 that it hired Enclave Capital to help structure financing, court investors and support transactions tied to its plan to grow distributed data-center operations. The move comes as the company works to build capital-market infrastructure for planned acquisitions and development.

Why it matters: - The engagement gives Entrex access to investment banking support as it looks to raise capital for growth and acquisitions. - Entrex is trying to build the financing base needed to expand its distributed data-center strategy. - The company wants capital formation to move alongside its acquisition pipeline and operating platform.

What happened: - Entrex said Oct. 5 it engaged Enclave Capital LLC to provide investment banking services. - The work covers capital formation and strategic growth initiatives. - Enclave will advise on financing structure, terms and conditions, investor outreach, management presentations, and transaction closing. - The engagement supports Entrex’s planned acquisition and development of distributed data-center operations. - Enclave can also bring in additional broker-dealers to broaden investor distribution.

The details: - Stephen H. Watkins, Entrex chairman and CEO, said the company has been building operating, acquisition and capital-market infrastructure to execute its growth strategy. - Watkins said the company hopes to work with Enclave’s institutional capital partners and begin executing plans in Q4, with scaling through 2027. - Robert L. Mazzeo, Enclave CEO, said the firm is impressed with Watkins and his team and expects to provide financing options for the growth plan. - Mazzeo said Entrex’s strategy of acquiring producing assets that can be deployed where conditions are optimal and scaled over time sets it apart from fixed-location data-center operators. - Entrex describes its strategy as “BUILD, ACQUIRE and EARN.” - Entrex says it acquires cash-flowing data centers while its BUILD vocational-school production program produces standardized Entrex EARN™ data center businesses for deployment. - Entrex says both paths are designed to generate recurring cash flow and expand its installed base and long-term operating and service relationships.

Between the lines: - The Enclave deal signals that Entrex is trying to professionalize its capital-raising process before making larger moves. - The emphasis on distributed, deployable assets suggests a flexible growth model rather than a single-site expansion plan. - The company is pairing operating growth with financing execution, which can matter if it wants to scale acquisitions quickly.

What's next: - Entrex expects capital formation to continue alongside development of its acquisition pipeline. - Watkins said the company hopes to start executing with Enclave in Q4 and scale through 2027. - The company’s next updates will likely center on financing progress, investor outreach and acquisition activity.

The bottom line: - Entrex is adding outside banking support as it tries to fund and scale a data-center acquisition strategy built around recurring cash flow.**