Calpers doubles investment in Grain Management spectrum deal with SpaceX
The California Public Employees' Retirement System (Calpers) is set to generate a return of approximately two times its investment in a radio spectrum portfolio managed by private equity firm Grain Management, following an $8bn acquisition agreement with SpaceX, according to a report by Bloomberg. The US pension fund reportedly committed more than $500m to Washington-based Grain Management…
Calpers, the California Public Employees Retirement System, has doubled its investment in a radio spectrum portfolio managed by Grain Management, following an $8bn acquisition agreement with SpaceX, according to Private Equity Wire. The pension fund committed over $500m to Grain Management through its Grain Spectrum Holdings V fund and a separately managed account, providing exposure to 800MHz wireless spectrum licences acquired from T-Mobile.
SpaceX plans to use the licences to expand its Starlink satellite-to-cell connectivity services, including coverage for indoor mobile devices. The transaction is expected to deliver a DPI multiple of almost 2x for Calpers, resulting in proceeds of at least $1bn in just over a year. The deal is awaiting approval from the US Federal Communications Commission.
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