Cerberus Capital Management raised $2.3 billion in new capital for SubCom through a continuation vehicle, extending its ownership and adding fresh equity to support the company’s growth.
The transaction, led by CVC Secondary Partners, allows Cerberus-managed funds to retain a controlling stake while bringing in new investors aligned with SubCom’s long-term expansion. Cerberus also made an additional direct investment alongside the vehicle. Since acquiring SubCom from TE Connectivity in 2018, the firm has backed the company’s scale-up as a vertically integrated provider spanning design, manufacturing, marine installation, and maintenance of subsea cable systems.
Subsea cables carry approximately 99% of intercontinental data traffic, and demand continues to accelerate with the growth of cloud infrastructure, AI workloads, and global bandwidth consumption. As the only U.S.-based turnkey supplier in this market, SubCom is positioned as a strategic asset amid increasing focus on secure and resilient digital infrastructure.
- $2.3 billion continuation vehicle led by CVC Secondary Partners
- Cerberus retains controlling stake and adds new equity investment
- SubCom remains the only U.S.-headquartered turnkey subsea cable provider
- Vertically integrated model across engineering, manufacturing, deployment, and maintenance
- Demand driven by AI, cloud, and global data traffic growth
- Evercore and Kirkland & Ellis advised on the transaction
“SubCom is a trusted global partner for critical digital infrastructure, and the need for what we do has never been greater,” said Dave Coughlan, CEO of SubCom. “With Cerberus’ continued partnership, we are strategically investing in our platform to meet that global demand at scale.”
