Broadband technology and communications sector-focused investor Grain Management is seeking to raise $4bn (€3.6bn) for its latest fund, according to a potential investor.
The Connecticut Retirement Plans and Trust Funds (CRPTF) disclosed in a meeting document that it is considering issuing a $150m commitment to Grain Communications Opportunity Fund (GCOF) IV, a fund expected to have an initial close in the current quarter.
The fund is expected to have its final close around the first quarter of 2024.
The previous flagship fund, GCOF III, which closed in April 2021, received $2.25bn in commitments to target mission-critical communications assets and equity investments in companies that own and operate them in both US and abroad.
As previously reported, CRPTF backed GCOF III in 2021.
Grain Management is expected to make a co-investment of $80m or 2% of the total capital raise, depending on which is less, into GCOF IV.
The fund targets a 25% gross internal rate of return and a 2.5x gross multiple on invested capital. The fund expects 75% of the portfolio to be in North America with the remaining portfolio in other regions like Europe.
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