Cerberus Capital Management L.P. has closed its single-asset continuation vehicle for subsea company SubCom.

In total, the continuation vehicle secured approximately $2.3 billion in commitments and was led by CVC Secondary Partners.

SubCom, previously Tyco Telecommunications, can trace its roots back to AT&T’s marine unit, which it sold off in 1997. US private equity firm Cerberus Capital Management bought the company from Tyco in 2018 and renamed it SubCom.

SubCom is the only US-based provider of subsea cable systems.

As part of the continuation vehicle, Cerberus noted it has made an additional investment in SubCom, while Cerberus funds will continue to own a controlling stake in the company.

According to Cerberus, the latest investment will support SubCom's continued expansion plans amid strong demand for subsea connectivity infrastructure. It's estimated that subsea cables underpin approximately 99 percent of intercontinental data traffic.

"SubCom holds a mission-critical role in the infrastructure that connects the world," said Mike Sanford, Cerberus Global head of private equity and co-head of supply chain. "We believe SubCom will remain central to building and sustaining the infrastructure behind an increasingly data-driven world, and this milestone reflects that conviction."

"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," added Dave Coughlan, chief executive officer of SubCom.

Evercore, Inc. served as financial advisor, and Kirkland & Ellis LLP served as legal advisor to Cerberus in connection with the continuation vehicle.