Digital Colony has closed its Digital Colony Partners inaugural fund with $4 billion in commitments, surpassing its $3 billion target.
The commitments 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 Bridge and the $43 billion real estate investment management firm Colony Capital launched Digital Colony in 2018 to identify and capitalize on various investment opportunities within the digital infrastructure sector.
The fund has invested in four companies, including Andean Tower Partners, Digita Oy, a consortium comprised of StrattoOpencell and iWireless Solutions, and Peer 1. The Digital Colony fund has also signed a definitive agreement together with EQT Infrastructure to acquire global network solutions provider Zayo Group.
According to Marc Ganzi, CEO and co-founder of Digital Bridge, digital communications are evolving at an unprecedented rate, causing demand for network infrastructure to surge.
"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,” said Ganzi in a statement.
