DIGITAL ALPHA ADVISORS, LLC

Thesis

Digital Alpha Advisors, LLC, a private equity firm founded in 2017 and based in Henderson, Nevada, manages approximately $2.4 billion in AUM. The firm's investment thesis focuses on foundational digital infrastructure and services, including next-generation networks (5G, Wi-Fi 6), cloud computing, IoT, and smart city solutions. They strategically target the 'active layers' of the internet economy, such as routing, switching, and wireless technologies, differentiating from passive infrastructure investments. Their strategy includes direct equity investments and revenue-sharing arrangements, aiming to build robust platforms and drive digital transformation. Geographically, their focus is primarily on the United States and North America, with a two-to-one ratio of North American to European investments. While specific stage preferences are not detailed, their focus on growth and infrastructure development suggests a leaning towards growth-stage companies and projects. The firm has closed multiple funds, with Digital Alpha Fund II, L.P. raising over $1 billion. Investments range from significant commitments like $185 million to WeLink Communications and $100 million to Sharecare, to a $75 million joint venture in PacketFabric, with an average account size around $183.2 million.