Cequel III

Cequel III is a St. Louis-based private investment and management firm co-founded in 2002 by Chairman and CEO Jerry Kent. The firm's genesis is deeply rooted in Kent's extensive experience in the telecommunications sector, a journey that began in 1983 at Cencom Cable Associates, Inc. His career includes co-founding Charter Communications in 1993, leading it to become the fourth-largest U.S. cable operator, and orchestrating its IPO, which was the third-largest in U.S. history at the time. This background in operational excellence and scaling businesses forms the bedrock of Cequel III's investment philosophy.

The firm operates as a family office, investing its own long-term capital, which allows for flexible investment horizons without the constraints of traditional private equity funds. Cequel III targets control positions in North American, middle-market companies with a minimum EBITDA of over $2 million, making initial platform equity investments between $5 million and $50 million. The business model focuses on partnering with the management teams of growth-oriented companies to build value through a combination of operational improvements, organic growth strategies, and strategic add-on acquisitions. The firm has a transaction history valued at over $40 billion, building successful enterprises in telecommunications, technology, and business services. Key historical successes include building AAT Communications into the largest privately-owned U.S. cell tower company before its 2006 sale, and managing Suddenlink Communications until its $9.1 billion sale in 2015.

Cequel III's investment strategy is sector-agnostic but shows a preference for industries with recurring revenue models, opportunities for consolidation, and strong free cash flow margins. The portfolio includes investments in business services, information technology, SaaS, real estate, and healthcare. A recent example of its strategy in action is the acquisition of a controlling interest in DDC Cabinet Technology, a manufacturer of cooling solutions for high-density data centers essential for artificial intelligence applications. This investment leverages Cequel III's expertise in the technology and data center sectors, notably through its investment in TierPoint. The firm actively seeks to be a value-added partner, leveraging its deep operational experience to foster growth and support its portfolio companies.

Keywords: private investment firm, Jerry Kent, family office investing, middle-market private equity, operational excellence, telecommunications investment, technology investment, business services, control investments, add-on acquisitions, long-term capital, value creation, St. Louis investor, Charter Communications, Suddenlink, TierPoint, data center infrastructure, recurring revenue models, growth equity, leveraged buyouts