$500+ million of additional funding will support fiber-to-the-home network construction to reach as many as 1 million locations across the state
SOUTH SAN FRANCISCO, Calif., Sept. 9, 2024 /PRNewswire/ — Race Communications, a leading Fiber-to-the-Home (FTTH) provider in California, announced today that it has secured more than $500 million in additional capital to accelerate the expansion of its fiber network across the state. This capital raise includes $375 million in equity from Oak Hill Capital, the existing majority investor, and its limited partners. The funding also features incremental debt financing from existing lender AB Private Credit Investors, who will also be participating in the equity round. This significant infusion of capital will support Race’s ambitious plan to extend its FTTH network to as many as 1 million locations throughout California over the next several years.
Established in 1994, Race Communications is a leader in delivering high-speed internet to communities across California. With a current reach of approximately 200,000 locations, Race has made significant strides in bridging the digital divide by providing reliable and fast internet service to a diverse range of communities in California, including metropolitan suburbs such as Lancaster, Chico, and Yuba City and rural areas in the Central Valley. This new funding will enable Race to enhance its efforts to connect even more Californians to the benefits of fiber-optic technology.
“California presents a tremendous opportunity for fiber deployment, and this new funding allows us to ramp up our construction efforts across the state,” Raul Alcaraz, CEO of Race Communications, said. “We are thrilled to have the continued support of Oak Hill Capital and to welcome our new partners as we work together to bring world-class internet service to an even larger number of residents and businesses throughout the state.”
Oak Hill Capital has been a dedicated partner to Race Communications, supporting its growth and expansion efforts since its initial investment in 2020. “Race Communications has a strong track record of success in delivering high-quality fiber-optic services to communities across California,” Scott Baker, Managing Partner at Oak Hill Capital, said. “We are excited to deepen our commitment to Race to further enhance Race’s ability to meet the growing demand for high-speed internet in our home state of California.”
Oak Hill Capital’s broader fiber portfolio, which spans thirty-one states, further underscores its commitment to advancing digital infrastructure across the United States. With significant investments in several FTTH companies, Oak Hill is a leading investor in the industry, seeking to drive innovation and growth in the broadband sector.
Race is also excited to announce the addition of two independent directors to its Board of Directors; Jim Gleason is the CEO of Vexus Fiber, a FTTH operator across Texas and surrounding states backed by Oak Hill and now a subsidiary of Metronet, and Harold Zeitz is the CEO of Ziply Fiber, a FTTH operator across the Pacific Northwest and former COO of Oak Hill-backed cable and fiber operator Wave Broadband. Mr. Gleason and Mr. Zeitz have both led the expansion of their companies’ FTTH networks to underserved markets in their respective regions and we believe are well-positioned to support Race’s accelerated growth in California as board members.
About Race Communications
Race Communications is a leading provider of fiber-to-the-home (FTTH) services, committed to delivering reliable, high-speed internet to communities across California. Founded in 1994, Race has grown to serve hundreds of thousands of communities and continues to expand its network to reach underserved and rural areas. Race is dedicated to bridging the digital divide and providing cutting-edge technology to all Californians.
About Oak Hill Capital
Oak Hill is a longstanding private equity firm focused on the North America middle-market. Oak Hill applies a specialized, theme-based approach to investing and implements a highly systematic approach to theme development, proactive origination, and value creation in partnership with management to build franchises of lasting value. Over the past 35+ years, Oak Hill and its predecessors have raised over $23 billion of initial capital commitments and co-investments and invested in over 110 companies. For more information, please visit www.oakhill.com.
About AB Private Credit Investors
Established in 2014, AB Private Credit Investors (AB-PCI) is AB’s private corporate credit platform. AB-PCI’s team of more than 80 professionals manages $19.2 billion of capital available for investment. AB-PCI’s Digital Infrastructure and Services team provides scalable and flexible credit solutions to support leveraged buyouts, network builds, acquisitions, and other growth initiatives to all sub-verticals in the digital infrastructure ecosystem. The dedicated 9 person DIS team has committed nearly $5 billion to more than 50 sector companies. Visit here for more information on AB-PCI.
For additional information or press inquiries please contact:
Kaitlin Colson
Director of Sales and Marketing
Race Communications
kaitlin.colston@race.com
SOURCE Race Communications