Digital Colony Management is seeking to raise $6bn (€4.9bn) for its latest digital infrastructure fund, according to Orange County Employees Retirement System (OCERS), which has committed €75m to the vehicle.
Last month, IPE Real Assets reported that three other US pension funds had committed $500m to Digital Colony Partners II, but its fundraising target remained unknown.
An OCERS board meeting report says Digital Colony Management is aiming for $6bn and its investment will form part of the fund’s first close, giving the pension fund a discounted management fee for the first 12 months.
Digital Colony Management was launched in 2017 through the merger of Digital Bridge Holdings and Colony Capital, raising more than $4bn for its first fund in 2019.
The latest fund will pursue a value-add strategy, targeting assets including data centres, macro cell towers, fibre networks and small-cell businesses.
The investment by OCERS will diversify its infrastructure exposure which to date has been exclusively core.
The pension fund also said the expected increase in global data traffic, rising demand for data storage, transmission and connectivity will increase the need for infrastructure investments.
The pension fund expects net and gross target returns from the fund of 11-15% and 15-20%, respectively.
