Cerberus Capital Management has closed a $2.3 billion single-asset continuation vehicle for Subsea Communications, reinforcing its long-term commitment to the critical digital infrastructure company. The transaction was led by CVC Secondary Partners.
The continuation vehicle includes approximately $2.3 billion in commitments and is accompanied by an additional investment from Cerberus-managed funds, including those tied to the firm’s Supply Chain strategy. Cerberus funds will retain a controlling stake in SubCom following the transaction, extending a partnership that began with the company’s carve-out from TE Connectivity in 2018.
SubCom has since strengthened its position as a leading global supplier of turnkey subsea fiber optic cable systems. The company is currently the only U.S.-based provider of such systems and operates a vertically integrated platform spanning engineering, manufacturing, marine installation, and maintenance.
Subsea cable networks carry approximately 99% of intercontinental data traffic and are a foundational component of the global digital economy. Demand for this infrastructure continues to accelerate, driven by cloud computing, artificial intelligence, and expanding global connectivity needs. SubCom’s scale and end-to-end capabilities position it as a critical enabler of future data consumption.
Cerberus noted that the new investment will support SubCom’s continued expansion as demand for subsea connectivity grows worldwide. The firm emphasized the strategic importance of strengthening infrastructure that underpins global data flows and enhances the resilience of digital networks.
Advisors on the transaction included Evercore Inc. as financial advisor and Kirkland & Ellis LLP as legal advisor to Cerberus.
KEY QUOTES:
“SubCom holds a mission-critical role in the infrastructure that connects the world. Its integrated platform, global capabilities, and operational excellence set it apart in the industry, and we have been proud to partner in SubCom’s strong growth led by Dave Coughlan and his team. We believe SubCom will remain central to building and sustaining the infrastructure behind an increasingly data-driven world, and this milestone reflects that conviction.”
Mike Sanford, Global Head of Private Equity and Co-Head of Supply Chain, Cerberus Capital Management
“SubCom’s management team, alongside Cerberus, have led the Company to new heights over the past seven years. As a global industry leader and the only U.S.-headquartered provider of subsea cable systems, SubCom’s growth opportunities continue to be robust. Our continued partnership through this new investment exemplifies our Supply Chain strategy’s focus on advancing the security and resilience of the U.S. and its allies.”
Pat Moriarty, Managing Director, Supply Chain, Cerberus Capital Management
“SubCom is a trusted global partner for critical digital infrastructure, and the need for what we do has never been greater. With Cerberus’ continued partnership, we are strategically investing in our platform to meet that global demand at scale. We remain deeply committed to delivering the quality and reliability our customers around the world have depended on for decades in our next chapter of growth.”
Dave Coughlan, Chief Executive Officer, Subsea Communications
“SubCom is a high-quality, mission-critical business at the center of global digital infrastructure, and we are pleased to support its continued growth. This transaction reflects our conviction in SubCom’s market leadership and long-term tailwinds, and we look forward to partnering with Cerberus and management to help drive the Company’s next phase of expansion.”
Rikesh Mohandoss, Partner, CVC Secondary Partners
