The private equity firm Novacap, a leader in North America, announced the final close of its first fund dedicated exclusively to digital infrastructure investment, successfully raising over $1 billion. This milestone marks a significant advance in the firm’s strategy as it focuses on a key sector for the technological future.
An Innovative and Strategic Fund
The Novacap Digital Infrastructure Fund I has surpassed its initial target thanks to the support of institutional investors, family offices, and private wealth from North America, Europe, the Middle East, and Asia. In addition to the main commitments, the fund includes co-investments, solidifying its position as a prominent player in the market.
Pascal Tremblay, President and CEO of Novacap, stated:
“This achievement reflects the confidence our investors have in our experienced team and our ability to generate sustainable long-term value for all stakeholders.”
Focus on Digital Infrastructure
The fund specializes in equity investments in mid-to-lower market companies in North America that provide essential connectivity and data access services backed by robust physical assets. This new platform builds on Novacap’s extensive prior experience in the sector, enhancing its ability to identify opportunities and foster business growth.
Ted Mocarski, Senior Partner and Head of Novacap’s Digital Infrastructure Division, commented:
“Our strategy is based on deep expertise and strong industry networks. This sector-focused approach allows us to identify attractive opportunities and help them grow with our strategic and operational support.”
Initial Investments of the Fund
The Novacap Digital Infrastructure Fund I has already begun implementing its strategy with investments in four key companies:
- INdigital: A leader in next-generation services for 9-1-1 emergency calls.
- All West Communications: A broadband network operator providing high-speed telecommunications services.
- Communications Tower Group: A developer and acquirer of digital wireless assets.
- HyScale: An owner and operator of data centers.
Market Support and Strategic Partners
The fund’s success in a competitive fundraising environment underscores the differentiation of its strategy and the quality of its team. Alex Russ, Senior Managing Director at Evercore, remarked:
“The strong demand for the fund reflects the caliber of the Novacap team and their innovative approach to digital infrastructure.”
Evercore Private Funds Group acted as the exclusive global placement agent, while Davies Ward Phillips & Vineberg LLP served as the fund’s legal advisor.
About Novacap
Founded in 1981, Novacap is one of Canada’s most experienced private equity firms, focusing on four main sectors: technology, industries, financial services, and digital infrastructure. With over CA$10 billion in assets under management and offices in Montreal, Toronto, and New York, Novacap continues to drive innovation and growth in North America.
via: Novacap