DigitalBridge raised $1.1 billion for its inaugural digital infrastructure credit fund, DigitalBridge Credit (Onshore), including related co-investment commitments.
The Boca Raton, Fla.-based firm’s credit strategy drew support from both new and existing investors seeking exposure to infrastructure credit, including pension funds, insurance companies, sovereign wealth funds, asset managers, family offices and private wealth platforms. U.S. pensions invested in the firm’s previous strategies include the School Employees Retirement System of Ohio and the Teacher Retirement System of Texas.
The DigitalBridge Credit strategy targets debt investments across all digital infrastructure subsectors and focuses on current income-based returns in first lien term loans, second lien term loans and junior debt.
“Establishing DigitalBridge’s brand within the expanding private credit sector reflects support from senior management and the strength of our relationships and partnerships with industry experts as we source and diligence opportunities,” said Dean Criares, head of credit at DigitalBridge. The firm has built a $70 billion-plus portfolio of digital infrastructure assets over the past 25 years. The DigitalBridge Credit team has made 11 investments to date across the data center, fiber, satellite broadband and cloud infrastructure subsectors.
“We believe the addressable market in digital infrastructure is large and expanding, leaving opportunities to deliver quality assets to our investors at a predictable pace,” Criares added.
Latham & Watkins advised DigitalBridge on the formation of the fund.