Cequel III

What Cequel III does

Cequel III, LLC is a private investment firm founded in January 2002 by Jerry Kent and Howard Wood and headquartered at 12444 Powerscourt Drive, Suite 450, in St. Louis, Missouri. The firm operates through a Family Office direct investment arm that targets controlling equity positions in lower-mid-market, growth-oriented companies with recurring revenue models, non-cyclical demand profiles, and experienced management teams. Cequel III functions as an "investor operator," supplying both capital and hands-on operational leadership through a small team of roughly 11–50 senior executives who simultaneously hold roles at the firm and at portfolio companies.

Cumulatively the team has executed over $40 billion in successful transactions. The portfolio is concentrated in telecommunications, data center, and digital infrastructure assets. The largest active holding is TierPoint, a U.S. enterprise data center operator that grew from a single Dallas facility (co-founded by Jerry Kent as "Cequel" in 2010) to 40 data centers across 20 U.S. markets, financed in part by approximately $2 billion in asset-backed securities and majority-owned by Argo since 2024 after roughly $700 million in cumulative investment since 2020. Other current or representative holdings include The Benton Ridge Telephone Company (Ohio broadband, acquired October 2022), Maryville Centre/Woodsmill Commons (office park), and Springfield Urgent Care. Notable realized exits include Suddenlink Communications (sold to Altice in 2015 for a $9.1 billion enterprise value), AAT Communications (the largest privately owned U.S. cell tower company at the time of its 2006 sale), StayLock Storage (sold in 2021 after growing through 22 acquisitions of 79 facilities), and DDC Solutions (sold to Daikin Applied in August 2025 alongside co-investor Thompson Street Capital Partners).

Revenue is generated through investment management, co-investment fees, and carried interest on exits; the firm does not publicly disclose revenue or AUM figures, and as a Family Office it primarily deploys its own capital alongside selected co-investors such as Argo and Thompson Street Capital Partners. Customer concentration is high, with TierPoint representing the dominant share of operational footprint and shared executive leadership. The firm is currently executing a leadership transition at TierPoint, with Jerry Kent moving from CEO to Executive Chairman and Egon Zehnder retained to conduct the CEO search.

Name

Cequel III

Legal name

Cequel III, LLC

Website

https://cequel3.com

Company type

Private

Founded year

2002

Operating status

Operating

Headcount range

11–50 employees

Short description

Cequel III is a St. Louis-based private investment firm and Family Office founded in 2002 that makes controlling equity investments in lower-mid-market, growth-oriented companies, primarily in telecommunications, data centers, and digital infrastructure, with a cumulative track record exceeding $40 billion in transactions.

Ownership category

akta.pro rank

Product category

Private Equity Investment Management

NAICS

All Other Financial Investment Activities (52399)

SIC

Investors, Nec (6799)

akta.pro primary industry

Family Office Investment Platforms & Direct Investing (PE/VC/Co-Invest) (FSAAADAH)

Keywords

• Private equity investment
• Family office investing
• Growth equity firm
• Investor operator
• Portfolio management

Headquarters

HQ city

Saint Louis

HQ country

United States

HQ region

North America

Offices1 record

Markets served

GTM type

B2B

Offering type

Services

Cost components

Personnel, Operations

Revenue model

1. Investment Management and Carried Interest: Cequel III generates returns through equity investments in portfolio companies, realizing gains through successful exits. The firm has a track record of building industry-leading companies and selling them for significant enterprise values, such as Suddenlink sold for $9.1 billion enterprise value.

Go-to-market motion1 record

Distribution channels1 record

Marketing channels2 records

Core offering

Cequel III is a private investment firm that, through its Family Office direct investment arm, makes controlling equity investments in lower-mid-market, growth-oriented companies with recurring revenue models, non-cyclical demand profiles, and experienced management teams. The firm partners with management teams to provide capital and operational expertise, then exits investments through strategic sales, such as the $9.1 billion sale of Suddenlink to Altice.

Product overview

Cequel III operates as a private investment firm rather than a product company. Through its Family Office investment arm, the firm makes controlling equity investments in lower-mid-market, growth-oriented companies with recurring revenue models across multiple sectors. The firm's portfolio includes or has included: TierPoint (data center/managed services company), StayLock Storage (self-storage operator), DDC Solutions (data center cooling technology, now sold to Daikin Applied), Benton Ridge Telephone Co. (broadband provider), Maryville Centre/Woodsmill Commons (office park), and Springfield Urgent Care. The company does not offer a unified product platform but rather manages a diverse set of portfolio companies across technology, telecommunications, real estate, and healthcare sectors.

Differentiator

Problem solved

Functional benefit

Products and services

• Cequel III Family Office A private investment arm that leverages extensive operating experience and an entrepreneurial culture to partner with management teams of lower-mid-market, growth-oriented companies with recurring revenue models and experienced management teams. Acts as lead equity investor with controlling positions across multiple sectors.

Quantifiable outcome

• Over $40 billion in successful transactions
• +2 more outcomes

Named customers3 records

Segments1 record

Ideal customer profiles1 record

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Partnerships

Three partnerships are on record, tiered supporting, exit transaction and acquisition target.

• Egon ZehndersupportingImplementation/ SI/ Consulting Partner · 30 March 2026Egon Zehnder, a global leadership advisory firm, was retained by TierPoint to facilitate the executive search for Jerry Kent's replacement as CEO. The firm was hired to conduct the CEO search process.
• Daikin Appliedexit transactionOthers · 18 August 2025Daikin Applied, a subsidiary of Japan's Daikin Industries, acquired DDC Solutions from Cequel III and Thompson Street Capital Partners. The acquisition supports Daikin's strategy to expand into the fast-growing data center sector.
• Benton Ridge Telephone Co.acquisition targetStrategic or Co-development Partner · 5 October 2022Cequel III, a technology investment and management firm led by Jerry Kent, was acquiring Benton Ridge Telephone Co., a broadband provider headquartered in Ohio. This represents Cequel III's expansion into broadband services.

Scale indicators4 records

Recent moves5 records

Expansion highlights5 records

Direct peers

• Avista Capital Partners: Middle-market PE firm with strong historical focus on telecom, media, and technology-enabled services. Comparable in sector heritage and lower-mid-market deal profile.
• Siris Capital Group: Lower-mid-market PE firm with deep telecom and technology focus, often investing as a controlling shareholder alongside management teams. Highly comparable to Cequel III in target profile (lower-mid-market, tech/telecom, controlling stakes) and operating style.
• Searchlight Capital Partners: Lower-mid-market PE firm focused on technology, telecommunications, and media businesses in North America and Europe. Targets controlling investments with operating partnership — closely aligned with Cequel III's mandate and approach.
• Welsh, Carson, Anderson & Stowe: Long-established PE firm specializing in technology, healthcare, and business services, historically with strong cable/telecom expertise. Comparable to Cequel III in sector legacy, lower-mid-market focus, and operating partnership model.
• Thompson Street Capital Partners: St. Louis-based PE firm investing in lower-mid-market growth companies across technology, healthcare, and services. Direct co-investor with Cequel III on DDC Solutions — explicitly comparable in geography, stage, and operating style.
• GTCR LLC: Chicago-based PE firm focused exclusively on lower-mid-market growth companies, partnering with management teams as lead investor. Directly comparable target profile and "Leaders Strategy" operating partnership approach.
• Clearlake Capital Group: Technology-focused PE firm making controlling investments in software, data, and tech-enabled businesses. Comparable in technology-sector concentration, lower-mid-market orientation, and operational value-add.

Broad incumbents

• KKR & Co. Global alternative asset manager with a dedicated Americas private equity franchise investing in telecom, technology, and infrastructure — including data centers. While much larger, KKR competes for some of the same lower-mid-market assets and infrastructure opportunities.
• Berkshire Hathaway: Family-controlled holding conglomerate making controlling investments across diverse sectors including telecom, energy, and real estate. Comparable as a privately-controlled investment vehicle with operating expertise and long-duration capital, though vastly larger and more diversified.

Emerging players

• DigitalBridge Group: Alternative asset manager focused on digital infrastructure including data centers, towers, and fiber. Increasingly relevant comparable given Cequel III's TierPoint anchor in data centers and DDC Solutions exit in AI-cooling.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat3 records

Key risks5 records

Key highlights6 records

Customer concentration

• Facebookfacebook.com/hostirian
• LinkedInlinkedin.com/company/cequel-iii

Compliance4 records

Revenue estimate

Valuation estimate

Number of profiles

Profiles10 records

Subsidiaries1 record

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A2 records

Investments6 records

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Cequel III