new version available

Newsletter Sign Up

Please enter your email to receive FREE venture capital and private equity special offers, news, and information!

Your Name: 

Your Email:  

bookmark us

March 3, 2009

Private equity firm, Morgan Stanley Alternative Investment Partners Lead $128 Million in Equity for Zayo Group inc.

Based in Louisville, Colorado, Zayo Group has announced a large $128 million in equity funding, in which Morgan Stanley Alternative Investment Partners join existing investors in the funding.� Zayo Group is a company that provides fiber-based bandwidth, telecom, and wholesale voice solutions for the region.� Zayo Group uses a fiber network that spans over 129 different markets in 23 states.� This equity funding was closed in several different stages.� The first stage was closed in February with Charlesbank Capital Partners leading the Series B round of funding.�� Afterward, Zayo�s existing investors also increased their investments in the company.� Zayo Group�s existing equity syndicate currently includes Battery Ventures, Centennial Ventures, Charlesbank Partners, Columbia Partners, M/C Venture Partners, Margan Stanley AIP, and Oak Investment Partners.

Just one example of Zayo�s amazing growth is that in the past year Zayo�s revenue is near $200 million and its EBITDA is about $60 million.� The company�s net income for last year is positive and 2009 looks positive for Zayo as well.� Ken desGarennes, CFO of Zayo Group, stated that the company�s current business is predictable and growing, so the funds might not be needed to fund the business, however, the additional funds can be used to make strategic acquisitions of other telecom companies.� The extra funding will also go to assist Zayo�s current and future clients.

According to Zayo Group�s CEO, Dan Caruso, a major step for Zayo is having Morgan Stanly AIP join the company's existing equity investors.�� The fact that individuals are known by the companies they keep their contract with, likewise companies are known by their investors.� The fact that Zayo Group is successful today is evident by the past years work by every member of the Zayo team.�

Morgan Stanley AIP is a branch of the Morgan Stanley�s funds division and manages assets over a broad spectrum of private equity strategies, such as buyouts, growth equity, venture capital, etc.�� Morgan Stanley AIP has offices in West Conshohocken, Pennsylvania; New York; London and recenly opened an office in Honk Kong.

Charlesbank Capital Partners is a middle-market private equity firm that manages close to $1.8 billion in capital.�� Charlesbank mainly focuses on management led buyouts and growth capital.� Charlesbank Capital Partners looks for partners that have strong management teams with sustainable competitive advantages and strong growth potential.