Canada’s Novacap Closes $1 Billion Private Fund With AI Theme

Canadian private equity firm Novacap Investments Inc. has closed a $1 billion fund to invest in digital infrastructure assets after a two-year process of raising the money.

The new fund is targeting about 10 regional companies that sell connectivity and data access services, backed by physical assets, with a strategy to invest as much as $100 million in each.

The Brossard, Quebec-based firm, which manages about C$11 billion ($7.7 billion), began courting investors for the digital fund at a time when rising interest rates and a slow market for acquisitions made it difficult for some private equity shops to raise ...