Digital Alpha Advisors closed its second digital infrastructure fund at more than $1 billion.
Digital Alpha Fund II exceeded its initial hard cap, a news release said. A person familiar with the fund said the target was $750 million and the initial hard cap was $1 billion.
The fund, $300 million of which has already been committed across three deals, invests in digital infrastructure assets, companies and revenue-share agreements — the same strategy as its Digital Alpha Fund I. Details on the first fund's closing amount were not available.
Investments focus on three key areas: next-generation networks, such as 5G infrastructure investments and Wi-Fi 6 solutions across the globe; cloud computing; and internet of things-enabled smart city solutions. Executives are looking to build a diverse portfolio of about 12 "anti-fragile" investments, which have resilient business models.
"We're thrilled to announce the close of our second digital infrastructure fund to support the growth of the digital economy. We're proud of the role our investments play in providing secure connectivity for private- and public-sector stakeholders during the pandemic," said Rick Shrotri, founder and managing partner, in the news release.
Investors include Border to Coast Pensions Partnership, Leeds, England, which committed $50 million to the fund. The pension pool's member funds have about £46 billion ($63.6 billion) in assets.