Canadian investor Cordiant Capital Inc. recently hired two executives and engaged anchor investors to raise capital for its telecommunications infrastructure equity team, the firm said on 21 January.
Its latest fund, the Telecommunications Infrastructure Equity Fund, Cordiant IX, will target a raise of USD 350m while the general partnership expects to achieve a first close sometime in 2Q or 3Q, a source close to the situation said.
The fund has a global mandate but will focus on assets primarily in Europe, the source added.
“The fund will specifically aim to capitalize on the increasing global need for new infrastructure as 5G technology prompts a worldwide increase in mobile data consumption and telecoms operators seek to share the cost,” the source said declining to comment on additional details about target assets.
While fund executives are still debating the allocation split between greenfield and brownfield assets, the source said: “there will be a bias towards providing growth capital to existing platforms.”
Details were not provided about management fees, but the source did say that “these will be within the context of the market.”
Cordiant IX will feature a 10-year tenor and target a 15%-20% IRR for its investors.
The anchor investors, existing Cordiant limited partners, consist of “large” pension funds, European insurers and “large” family offices, the source said.