Oak Hill and Cinelli Family Complete Sale of Metronet
In a significant development in the digital infrastructure sector, Oak Hill Capital and the Cinelli family proudly announce the completion of the sale of Metronet, a leading independent fiber-to-the-home (FTTH) provider in the U.S. This move represents a strategic alignment towards expanding Metronet's operations to enhance wholesale services and transition residential customers to T-Mobile.
Investment Journey of Oak Hill Capital
Oak Hill began its journey with Metronet in 2014, initiating a fruitful relationship that spanned over a decade. Throughout this period, the firm provided substantial capital support, enabling Metronet to evolve into a prominent player in the FTTH market. Over the years, Metronet has achieved remarkable growth, expanding its fiber network to reach more than 2.6 million locations across 300 communities in 19 states.
Partnership Transformation
Reflecting on the transformation, Benjy Diesbach, Senior Operating Advisor at Oak Hill, expressed immense pride in the collaboration. He noted how Metronet has successfully extended its reach from just 10 towns in Indiana to becoming operational across 19 states, significantly increasing the number of locations passed. This growth is a testament to the impressive leadership and dedication of the Metronet team.
Continued Commitment to Digital Infrastructure
John Cinelli, Co-Founder and Chairman of Metronet, articulated gratitude towards Oak Hill for its 10-year partnership, recognizing its role in the company’s achievements. With over 2.6 million locations served, the company continues to make strides in delivering fast internet to homes and businesses. The ongoing investment from Oak Hill further underlines its confidence in Metronet’s future.
Future Prospects for Metronet and Oak Hill
This transaction is part of Oak Hill Capital's broader Digital Infrastructure strategy. The firm, with a strong focus on resilient, defensive growth-oriented services, has nurtured significant investments in FTTH companies. As one of the largest independent builders of residential fiber in the country, Oak Hill's endeavors now span 34 states. The recent divestiture of Metronet is aligned with the firm's continued commitment to strengthening its digital infrastructure portfolio.
About Oak Hill Capital
Established as a thematic, middle-market private equity firm, Oak Hill Capital specializes in investing in resilient businesses across North America. With an impressive portfolio and a commitment to building enduring franchises, Oak Hill is strategically aligned to themes like digital infrastructure, financial services, and essential services. The firm has successfully invested over $24 billion across more than 110 companies, demonstrating its unparalleled experience in the industry.
About Metronet
As the fastest-growing fiber-to-the-home builder, Metronet continues to thrive under its new ownership structure, now a joint venture between T-Mobile and KKR. The company operates entirely on fiber optic networks, focusing on commercial and wholesale operations, while ensuring exceptional customer experiences through T-Mobile Fiber. Since its inception, Metronet has consistently expanded, providing its services to millions of homes and businesses across the nation.
Frequently Asked Questions
What is the significance of the sale of Metronet?
The sale marks a strategic transition for Metronet, enabling it to enhance its wholesale service capabilities and transition residential customers to T-Mobile, broadening its operational reach.
Who are the key players involved in this transaction?
Oak Hill Capital and the Cinelli family are the primary players in this transaction, having worked together for over ten years to grow Metronet into a leading FTTH provider.
What are the future growth prospects for Metronet?
With strong backing from T-Mobile and a focus on fiber-to-the-home services, Metronet is well-positioned for continued growth and expansion into new markets.
How has Oak Hill Capital influenced Metronet's growth?
Oak Hill has significantly impacted Metronet’s growth through consistent investments and strategic guidance, leading to a 20x increase in key operational metrics over their partnership.
What makes Oak Hill Capital a unique investment firm?
Oak Hill Capital's thematic investment approach identifies resilient and growth-oriented businesses, focusing on sectors with sustained growth opportunity, particularly in digital infrastructure.
