DigitalBridge Group Inc. is in talks to raise more than $1 billion for a new fund dedicated to longer-term bets, according to people with knowledge of the matter.
The firm is discussing DigitalBridge Strategic Assets Fund with prospective investors, said the people, asking not to be named because the matter is private. It’s targeting returns of roughly 8% to 12%, net of fees, from wagers in companies that have a tenure of 10 to 20 years. Terms aren’t finalized and the fund’s target may change.
The Boca Raton, Florida-based firm described an opportunity to invest in “long-duration, predictable-return strategies,” and assets with lower risk and return profiles, according to a February presentation. “We believe that we’re uniquely positioned with global strategic customer relationships and deal-sourcing capabilities to identify and prosecute opportunities that fit this profile,” Chief Executive Officer Marc Ganzi said on a call with analysts at the time. The strategy would be led by executives Matt Evans and Peter Hopper, Ganzi said.
DigitalBridge isn’t alone in its pursuit of long-dated bets, which are also referred to as a “core” strategy. Peers including Carlyle Group Inc., EQT AB and Global Infrastructure Partners are all raising similarly focused funds, Bloomberg News has reported.
The firm in January said it raised $8.3 billion for its second flagship fund, DigitalBridge Partners II LP. Investors in that vehicle include the Teacher Retirement System of Texas and Indiana Public Retirement System, data compiled by Bloomberg shows.
Last month, that fund teamed up with Australia’s IFM Investors and reached an agreement to acquire data-center operator Switch Inc. Bloomberg