SubCom Lands $2.3B to Cable the AI Era

Cerberus closes a $2.3B continuation vehicle for SubCom, backed by CVC, to ride the AI-driven subsea cable boom

15 Jun 2026

Cerberus Capital Management has closed a $2.3 billion single-asset continuation vehicle for SubCom, one of the biggest infrastructure deals to hit the subsea cable sector this year. Finalised on 21 April 2026 with CVC Secondary Partners, the transaction extends Cerberus' controlling stake while setting SubCom up to chase a surge in undersea connectivity demand driven by AI and cloud buildouts.

The numbers carry weight. Measured against SubCom's estimated $1.8 to $2.0 billion in annual revenue, the deal signals just how aggressively private capital is crowding into digital infrastructure. SubCom holds a structural advantage as the only U.S.-headquartered manufacturer of complete, end-to-end subsea cable systems, a fact that matters increasingly as governments scrutinise who controls critical undersea networks. Investors appear willing to pay for that kind of strategic moat.

Seven years of Cerberus ownership have done visible work. Pat Moriarty, Cerberus Supply Chain Managing Director, noted that "SubCom's management team, alongside Cerberus, have led the Company to new heights over the past seven years" and that "growth opportunities continue to be robust" for the global industry leader. That foundation now positions SubCom for a sharper expansion push.

Hyperscalers and cloud providers are commissioning new transoceanic cable routes at a pace not seen in a generation, and SubCom's integrated design, manufacture, and installation capabilities put it squarely in line for a large share of those contracts.

Analysts expect the company's order backlog to grow materially through 2027 as new Pacific and Atlantic routes move from planning to procurement. Backing from two seasoned alternative asset managers makes that competitive position harder to challenge.