Oak Hill Capital is to invest $150 million in US fiber broadband provider Lit Communities.

Announced last week, the investment will be used to fund and accelerate Lit's fiber-based network in markets across the US and help enable the build of its fiber-to-the-home (FTTH) networks to more than 200,000 locations over the next few years.

The company which is based in Birmingham, was founded in 2019 and specializes in leveraging public-private partnerships with local governments to build and operate last-mile fiber networks.

The investment will allow Alabama-based Lit to construct its fiber-based network in unserved and underserved communities across the US. Lit currently has networks in place, under construction, or in planning in Ohio, Pennsylvania, and Texas.

"This is a pivotal point for our company," said Andrew Massey, chief financial officer for Lit.

"We’ve spent years developing an expertise in collaboratively working with local governments and municipalities to determine where and how to efficiently build networks. The Oak Hill investment provides us the capital and expertise to accelerate our plans of providing ultra-fast, reliable, and affordable broadband service in the communities we partner with and serve."

Despite the recent investment from Oak Hill, the company confirmed that Lit's existing shareholders, which include Stephens Capital Partners, The Pritzker Organization (TPO), and the Lit management team, will all remain shareholders.

Lit currently operates fiber networks that reach around 20,000 homes and businesses.

Oak Hill has also invested in other fiber broadband companies including Indiana-based Metronet; fiber optic telco Vexus, which serves customers in Texas and Louisiana; GoNetspeed in the Northeast; Race Communications in California; Greenlight Networks in upstate New York; and Omni Fiber, which caters to Ohio, Pennsylvania, and Michigan.