Palistar Capital is eyeing a launch of its third telecom infra fund towards the middle of the year, as it reaches full realisation on its first fund.

The Charlotte, North Carolina-headquartered manager is due to launch Palistar Infrastructure III with a target around USD 2.5bn, according to sources close.

The fund is expected to follow the strategy of its predecessor, Palistar Infrastructure II, targeting telecom easement and wireless towers, as well as data centers and fiber assets mainly in North America with some allocation to Latin America and Europe.

The second fund held a USD 1.95bn final close in January last year. It has a 10-year term, targeting a net IRR of 10-12%.

It has so far completed five investments, according to Infralogic, with its latest investment being the acquisition of Parallel Infrastructure through portfolio company Harmoni Towers, which reached financial close last November.

Meanwhile its first fund is now fully realized, according to one of the sources close.

Telecom-focused Palistar Capital was founded by Omar Jaffrey in 2019 as Melody Investment advisers.

The news of Palistar’s new fund comes as several managers look to raise or close dedicated telecom funds. Digitalbridge is looking to raise its third flagship fund, Digitalbridge Partners III, which with a USD 12bn target could become by far the largest telecom fund to date.

Meanwhile, in the mid-market space Grain Communications is looking to launch its fourth flagship fund, its third fund having held a USD 2.25bn final close in April 2021.

Quinbrook Infrastructure Partners is eyeing a USD 2bn final close of its data center fund around the middle of the year, with Deutsche Telekom-backed DTCP also eyeing a final close of its Digital Infrastructure Vehicle II later in the year.

Palistar Capital declined to comment.

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