Montréal-based private equity firm Novacap has raised more than $1-billion USD ($1.43-billion CAD) for its first fund dedicated entirely to investing in digital infrastructure.
New fund has already deployed capital in four companies.
Novacap said in a statement that the new fund exceeded its fundraising target, and is backed by undisclosed existing and new institutional investors, family offices, and “high-net-worth investors” from North America, Europe, the Middle East, and Asia.
The firm added that the digital infrastructure fund complements its investments in technology, industries, and financial services.
The new fund is looking to invest as much as $100 million into 10 regional companies that sell connectivity and data access services backed by physical assets, according to BNN Bloomberg. Novacap CEO Pascal Tremblay told BNN Bloomberg that the fund exceeded its original target of $750-million USD after two years of fundraising, and that digital infrastructure will continue to be in high demand due to the growth of artificial intelligence.
“Our dedicated digital infrastructure team, comprised of industry veterans, investors, and entrepreneurs, has the experience to identify and source compelling investment opportunities in the lower mid-market and then help them grow and expand with our operational and strategic expertise,” Novacap senior partner, and head of the new fund, Ted Mocarski said in a statement.
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The fund has already deployed capital in four companies, including emergency services infrastructure company INdigital, broadband network provider All West Communications, wireless digital assets developer Communications Tower Group, and data center operator H5 Data Centers.
Founded in 1981, Novacap is one of Canada’s largest private equity firms and claims to have invested in more than 250 companies to date with more $10-billion CAD in assets under management.
Novacap last closed a fund in 2021, securing $1.865-billion USD ($2.37-billion CAD) for its sixth technology, media and telecommunications fund and $417-million CAD for its first financial services fund.
Image courtesy Novacap via LinkedIn.