Canadian Private Equity Firm Novacap Closes $1 Billion Digital Infrastructure Fund
Novacap Investments Inc., a leading Canadian private equity firm, has secured $1 billion in funding to invest in digital infrastructure assets. The two-year fundraising process targeted regional companies offering connectivity and data access services backed by physical infrastructure, with plans to invest up to $100 million in each.
Despite market challenges, Novacap exceeded its initial target of $750 million, attracting investments from institutional firms, family offices, and high-net-worth individuals globally. The fund has already invested in four U.S. businesses, including H5 Data Centers LLC and All West Communications Inc.
Novacap CEO Pascal Tremblay emphasized the continued demand for digital infrastructure due to the growth of artificial intelligence and new technology developments that drive the need for increased power, storage, and connectivity.
Founded in 1981, Novacap has a strong track record in technology investments, with stakes in companies like women's clothing designer Joseph Ribkoff and mattress manufacturer Kingsdown. Its notable success includes Nuvei Corp., which underwent a $6.3 billion privatization with Advent International, with Novacap retaining an 18% stake.
Despite market conditions, Novacap remains cautiously optimistic about the private equity industry in the coming years. Alex Russ of Evercore Inc., which advised Novacap on the fund, noted the strong demand for digital infrastructure investments amidst a competitive fundraising landscape.