Charlesbank Capital Partners has made a growth-capital investment in Zayo Group. Located in Louisville, CO, Zayo is a regional provider of telecom services – including bandwidth, voice and managed services – to carrier, enterprise and government customers. Led by Charlesbank, the investment also included equity from existing shareholders. Zayo plans to use the funds for the acquisition of complementary telecommunications assets or significant growth capital expenditures. Terms were not disclosed.
Zayo is led by CEO Dan Caruso and COO John Scarano, who together have 40 years of experience in the wireless and wireline sectors. “We are thrilled to have raised this equity,” says Mr. Caruso. “With this new capital we are well-positioned to be aggressive in the marketplace, both by addressing existing demand in our network and by pursuing attractive acquisition opportunities that have arisen as a result of the challenging capital markets.”
“Zayo has generated robust revenue and profit growth even during this macroeconomic downturn, a testament to its business model and exceptional management team,” says Michael Choe, a Charlesbank Managing Director. “We expect Zayo to continue to be a leading player in this rapidly consolidating industry, and are excited to help the firm capitalize on the favorable current market opportunity. Charlesbank is pleased to join Zayo’s shareholder group, and we look forward to supporting the management as they continue to grow the business.”
ABOUT CHARLESBANK CAPITAL PARTNERS
Based in Boston and New York, Charlesbank Capital Partners is a middle-market private equity investment firm managing more than $2 billion of capital. Charlesbank focuses on management-led buyouts and growth capital financings, typically investing $50 million to $150 million per transaction in companies with enterprise values of $100 million to $750 million. The firm seeks to partner with strong management teams to build companies with sustainable competitive advantages and excellent prospects for growth. Visit www.charlesbank.com for more information.