Race Communications Secures Major Funding to Expand Fiber Network
Race Communications Secures Funding for Expansive Growth
Race Communications has announced it has successfully raised over $500 million to enhance its fiber-to-the-home network across California. This financial boost will enable the company to extend its network infrastructure significantly, reaching up to one million locations in various communities throughout the state.
Strategic Financial Backing and Expansion Plans
The funding involves $375 million in equity provided by Oak Hill Capital, the company’s majority stakeholder, along with its limited partners. Additionally, Race Communications has secured an incremental debt financing round from AB Private Credit Investors, who is also participating in the equity funding. This diversified funding strategy aims to support Race’s ambitious agenda of expanding its fiber network efficiently.
Bridging the Digital Divide Across California
Established in 1994, Race Communications is a prominent name in the fiber-optic services sector and has made encouraging advances towards reducing the digital divide. The company currently covers approximately 200,000 locations, aiming to provide high-speed internet access to underserved communities, including rural areas and metropolitan suburbs.
Leadership Commentary on Upcoming Initiatives
CEO Raul Alcaraz expressed enthusiasm about the potential impact of this funding, stating that it allows for a significant ramp-up in fiber deployment across California. With a strong commitment to enhancing internet access, Race is excited about working alongside Oak Hill Capital and other industry partners to extend superior service to residences and businesses.
Continuous Support from Oak Hill Capital
Oak Hill Capital has played an instrumental role in Race Communications' growth trajectory since its initial investment in 2020. Their ongoing backing underscores confidence in Race's capabilities to meet the persistent demand for high-speed internet service in the state.
Industry Leadership and New Board Appointments
To support its growth initiatives, Race Communications is thrilled to announce the addition of two independent directors to its board: Jim Gleason, CEO of Vexus Fiber, and Harold Zeitz, CEO of Ziply Fiber. Their substantial experience in fiber network expansions will be invaluable as Race navigates its growth phase.
About Race Communications and Its Commitment
Race Communications proudly stands as a leading provider of fiber-to-the-home (FTTH) services in California. The company is dedicated to delivering reliable, fast internet to a wide array of communities. Since its inception, Race has tirelessly worked to bridge the digital gap by serving hundreds of thousands of residents, continually expanding its network to improve accessibility to advanced technology.
About Oak Hill Capital's Investment Philosophy
As a key private equity firm in North America, Oak Hill Capital is focused on advancing the middle market. They employ a methodical approach to identify growth opportunities and forge valuable partnerships that yield lasting success. This philosophy has led Oak Hill to invest significantly across various sectors, solidifying its status as a leader in the digital infrastructure arena.
Frequently Asked Questions
What is the purpose of the recent funding raised by Race Communications?
The funding will enhance Race's fiber-to-the-home network, enabling it to reach up to one million locations in California.
Who are the key partners in the funding?
Oak Hill Capital is the majority investor providing significant equity, alongside AB Private Credit Investors contributing debt financing.
What has Race Communications achieved so far?
Race currently serves roughly 200,000 locations, providing high-speed internet to various communities.
Who has joined Race's Board of Directors?
Jim Gleason and Harold Zeitz, both experienced leaders in the fiber sector, have recently been appointed to the board.
What is Race Communications' mission?
Race aims to provide reliable, high-speed internet to underserved communities and help bridge the digital divide in California.
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