Cerberus Closes $2.3B Continuation Vehicle for Subsea Cable Platform
Cerberus Capital Management, L.P. has closed a $2.3 billion single-asset continuation vehicle for Subsea Communications (SubCom), reinforcing investor demand for mission-critical digital infrastructure assets. The vehicle was led by CVC Secondary Partners.
As part of the transaction, Cerberus-managed funds—including those tied to its supply chain strategy—made an additional investment in SubCom and will retain a controlling stake. Cerberus originally carved out the business from TE Connectivity in 2018.
SubCom is a leading global supplier of turnkey subsea fiber optic cable systems, a segment that underpins roughly 99% of intercontinental data traffic. Demand for subsea infrastructure continues to accelerate, driven by the expansion of cloud computing, artificial intelligence and next-generation connectivity requirements.
“SubCom holds a mission-critical role in the infrastructure that connects the world,” said Mike Sanford, Cerberus Global Head of Private Equity and Co-Head of Supply Chain. “We believe SubCom will remain central to building and sustaining the infrastructure behind an increasingly data-driven world, and this milestone reflects that conviction.”
Evercore, Inc. served as financial advisor and Kirkland & Ellis LLP acted as legal counsel to Cerberus on the transaction.