Advent International has agreed to acquire a controlling interest in LayerZero Power Systems, a US manufacturer of mission-critical power infrastructure, as demand surges for AI and cloud computing-ready data centres.

The deal will see Advent partner with LayerZero’s co-founders, Milind Bhanoo and James Galm, who will retain minority stakes in the business. Annette Clayton, Operating Partner at Advent and former CEO of Schneider Electric North America, will join as Chair of the Board, bringing deep expertise in data centre operations.

Founded in 2001, LayerZero supplies static transfer switches, power distribution units, and other high-performance equipment essential to maintaining uptime in critical computing environments. The company has rapidly scaled in response to increasing deployment of GPUs and power-dense AI infrastructure.

“Under Milind and James’ leadership, LayerZero has emerged as a leader in one of the most attractive and fastest-growing segments of critical power infrastructure,” said Abhishek Chauhan, Principal at Advent. “We see significant opportunities to scale operations, strengthen customer relationships, and optimise performance.”

Bhanoo emphasised that the partnership will help LayerZero meet evolving customer needs without compromising quality. Galm noted that the backing will accelerate R&D and position the firm to deliver solutions for increasingly complex data centre environments.

Advent’s investment reflects growing interest in AI infrastructure among private equity firms. The firm has made similar plays in the sector, including its investments in INNIO and Volue. The transaction is expected to close in the third quarter of 2025, pending regulatory approvals.

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