Ziply Fiber
Private Equity Manager (GP)
Searchlight Capital Partners
Details
Region
USA
Sector
Communication services
Stage
Special Situations
Type
Primary
Exit type
Strategic sale
Type
2020
Highlights
Initial investment
£1.6m
Proceeds
£3.5m
Net IRR
25%
Return on the original cost
2.9 times
What Ziply Fiber does
Ziply Fiber is a broadband and telecommunications provider in the Pacific Northwest USA (Washington, Oregon, Idaho, and Montana).
Formed through the carve-out of Frontier Communications’ network assets, the company launched under new ownership with headquarters in Kirkland, Washington. At entry, it supported ~500,000 residential and business subscribers and had a clear mandate: modernise the network and improve customer experience.
Why we invested
Searchlight Capital Partners (“Searchlight”) backed Ziply Fiber to capitalise on the structural shift from legacy copper to high-speed fibre. The opportunity: acquire an underinvested asset, upgrade the infrastructure, and meet rising demand for reliable, fast internet access.
Key drivers:
-
- Favourable market trends: Continued demand for high-speed broadband supports long-term fibre adoption and take-up.
- Attractive valuation entry point: The $1.4bn carve-out offered compelling value in a region with strong demographics and growth potential.
- Clear reinvestment roadmap: Searchlight committed $500m to modernise the network and improve service quality – $2.0bn total enterprise commitment.
- Experienced Sponsor: Searchlight executed a complex carve-out and backed a seasoned broadband management team to lead the transformation.
Our partnership with Searchlight
Pantheon has a long-standing relationship with Searchlight through fund commitments and co-investments, supporting its infrastructure-led investment strategy in communications.
Value creation in action
Under Searchlight’s ownership, Ziply Fiber transitioned from a legacy copper network to a modern fibre platform.
Key actions:
-
- Network modernisation: Doubled data subscribers and grew fibre adoption from 54% to 86%, enhancing performance and reliability.
- Brand & Commercial Reset: Rebranded as Ziply Fiber with a refreshed go-to-market strategy to drive growth.
- Customer Experience Overhaul: Delivered symmetrical high-speed service and tripled customer care satisfaction scores.
- Earnings Growth: EBITDA (adjusted) rose from $205m to $354m (2025), an 11% CAGR.
Exit and Outcome
In August 2025, Searchlight sold Ziply Fiber to Bell Canada for ~$5.5bn EV, delivering a full realisation. PIN achieved a 2.9 times return on cost and an internal rate of return (“IRR”) of 25%.
