Digital Colony Creates $4.05B Investment Fund Targeted at Towers, Small Cells, Fiber & Data Centers
BOCA RATON, Fla. -- Digital Colony Management, LLC ("Digital Colony"), a global investment firm dedicated to strategic opportunities in digital infrastructure, today announced the final closing of its inaugural fund, Digital Colony Partners, LP ("the Fund"), with $4.05 billion in commitments, surpassing its original target of $3.0 billion. Digital Colony was launched in 2018 by Digital Bridge Holdings, LLC, a leading investor in and operator of companies enabling the next generation of mobile and internet connectivity, and Colony Capital, Inc. (NYSE: CLNY), a leading global real estate and investment management firm.
"Digital communications are evolving at an unprecedented rate; as a result, demand is surging for network infrastructure across towers, small cells, fiber and data centers," said Marc Ganzi, CEO and Co-Founder of Digital Bridge. "No one has ever raised a fund solely dedicated to this sector, but it is clear that new capital will be needed on a global basis to support network buildout and prepare for the implementation of 5G, IoT, AI and other forms of next generation networks. We believe this one-of-a-kind investment platform is well-positioned to seize attractive opportunities in an increasingly connected world."
Commitments to the Fund came from a broad mix of U.S. and international investors including sovereign wealth funds, institutional fund managers, pension funds, endowments, insurance companies, family offices and high net worth individuals, many of whom have previously invested with Digital Bridge or Colony Capital in other vehicles.
"Digital infrastructure represents the most compelling investment opportunity we see today, and this demonstrates our long-term commitment to the sector," said Thomas J. Barrack, Jr., Executive Chairman and CEO of Colony Capital. "The strong support from our investors for Digital Colony Partners underscores the attractiveness and uniqueness of our investment strategy."
The Fund has made four investments to date: Andean Tower Partners, an independent operator of wireless communications infrastructure in Colombia, Peru and Chile that was originally started by Digital Bridge; Digita Oy, an owner and operator of broadcast tower infrastructure in Finland and the country's largest independent owner of telecom towers; a rapidly growing U.K. platform which is currently comprised of StrattoOpencell and iWireless Solutions, leading providers of in-building and outdoor small cell and DAS solutions; and Peer 1, a Toronto-based provider of colocation, network connectivity and managed services. The Fund has also signed a definitive agreement in partnership with EQT Infrastructure to acquire Zayo Group Holdings, Inc. (NYSE: ZAYO), which provides bandwidth infrastructure in the United States, Canada and Europe.