Race Communications Secures Funding for Expansive Growth
Race Communications has proudly announced that it has successfully raised over $500 million aimed at enhancing its fiber-to-the-home network throughout California. This substantial financial support will allow the company to significantly expand its network infrastructure, ultimately reaching up to one million locations across various communities in the state.
Strategic Financial Backing and Expansion Plans
The funding package includes $375 million in equity from Oak Hill Capital, the company’s majority stakeholder, along with contributions from its limited partners. In addition, Race Communications has obtained an incremental round of debt financing from AB Private Credit Investors, which is also involved in the equity funding. This diverse funding approach is designed to facilitate Race’s ambitious plans for efficiently expanding its fiber network.
Bridging the Digital Divide Across California
Founded in 1994, Race Communications is a key player in the fiber-optic services industry and has made significant strides toward closing the digital divide. Currently, the company serves approximately 200,000 locations, with a mission to provide high-speed internet access to underserved communities, including both rural areas and suburban regions.
Leadership Commentary on Upcoming Initiatives
CEO Raul Alcaraz expressed his excitement about the transformative potential of this funding, noting that it will enable a substantial increase in fiber deployment across California. With a strong commitment to improving internet access, Race looks forward to collaborating with Oak Hill Capital and other industry partners to deliver exceptional service to both homes and businesses.
Continuous Support from Oak Hill Capital
Since its initial investment in 2020, Oak Hill Capital has been crucial to Race Communications' growth. Their ongoing support highlights a strong belief in Race's ability to meet the growing demand for high-speed internet services throughout the state.
Industry Leadership and New Board Appointments
To bolster its growth efforts, Race Communications is excited to announce the appointment of two independent directors to its board: Jim Gleason, CEO of Vexus Fiber, and Harold Zeitz, CEO of Ziply Fiber. Their extensive experience in fiber network expansion will be invaluable as Race embarks on this growth journey.
About Race Communications and Its Commitment
Race Communications is a leading provider of fiber-to-the-home (FTTH) services in California, dedicated to delivering fast and reliable internet to a diverse range of communities. Since its founding, Race has worked diligently to close the digital gap by serving hundreds of thousands of residents and continuously expanding its network to enhance access to advanced technology.
About Oak Hill Capital's Investment Philosophy
As a prominent private equity firm in North America, Oak Hill Capital is committed to advancing the middle market. They utilize a systematic approach to identify growth opportunities and build valuable partnerships that lead to long-term success. This investment philosophy has enabled Oak Hill to make significant contributions across various sectors, reinforcing its position as a leader in the digital infrastructure space.
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.
