Cerberus has secured $2.3bn for a single-asset continuation vehicle focused on SubCom, with CVC Secondary Partners leading the investment.

The transaction enables Cerberus to retain a controlling stake in the subsea cable provider while deploying additional capital to support its next phase of expansion.

Subsea cable systems carry approximately 99% of intercontinental data traffic, positioning SubCom at the centre of the digital economy.

Since its carve-out from TE Connectivity in 2018, SubCom has strengthened its market position as the only US-based provider of subsea cable systems, supported by a vertically integrated platform spanning engineering, manufacturing, installation, and maintenance.

Demand for subsea infrastructure continues to accelerate, driven by the growth of cloud computing, artificial intelligence, and next-generation connectivity networks, creating long-term tailwinds for the business.

“SubCom is a high-quality, mission-critical business at the center of global digital infrastructure, and we are pleased to support its continued growth,” Rikesh Mohandoss, Partner at CVC Secondary Partners, said in a company statement. 

The transaction was advised by Evercore as financial advisor and Kirkland & Ellis as legal advisor to Cerberus.

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