“Having originally led Ufinet as part of Gas Natural Fenosa (GNF), I then became CEO of Ufinet when Cinven acquired the Company back in 2014 and have been part of a decade of market-leading transformation ever since. It’s been a really successful partnership – each side brings strengths, and together we’ve achieved more than we could have achieved alone. The partnership was so successful during the initial stage, that in 2018, when the opportunity arose to continue the partnership with Cinven and lead the Ufinet International story, I didn’t hesitate,” says Ufinet CEO Iñigo García del Cerro Prieto. 

In 2014, Ufinet was acquired by the Cinven funds for €500 million. At the time, it was the unloved fibre cable division of listed Spanish company Gas Natural Fenosa and had fewer than 200 staff and generated €130 million revenues (of which €60 million in Latin America). Cinven’s Iberia and TMT teams collaborated closely to successfully position Cinven as the preferred partner to support Ufinet, allowing the business to flourish as an independent entity. Today, it is a world leading digital infrastructure platform operating across 17 countries with more than 135,000km of fibre-optic cable, more than 20 data centres, revenues exceeding €600 million and employing more than 2,200 people. 

Cinven’s acquisition of Ufinet followed a classic playbook for the private equity firm. After spending a year analysing the European fibre market—drawn by the long-term compounding potential of these assets, especially in high-growth regions with strong unit economics—Cinven was ready to act. Backed by insights from the research and experience from earlier cable investments in Ziggo (Netherlands) and Numericable Group (France), Cinven began the search for a European fibre operator. Ufinet stood out: it checked every strategic box and came with an added advantage—a small but rapidly expanding presence in Latin America. 

“When we sat down with Gas Natural and the Ufinet team, it was clear to them that we knew what we were talking about. That, combined with the thematic approach to origination allowed us to move fast and get the deal over the line,” says Jorge Quemada, Co-Managing Partner and Head of the Iberia regional team at Cinven.  

Over the past decade, three different Cinven funds have held stakes in Ufinet, reflecting the firm’s long-term conviction in the asset with EBITDA growing over 14 times. Fund 5 initiated the journey with the original €500 million investment in 2014. In 2018, following a strategic split of the business, Antin Infrastructure bought the Spanish business for €850 million while Fund 6 acquired the International operation for €1.1 billion. At that point, Cinven also brought in Italian energy giant Enel as a co-investor. Most recently, in December 2021, Fund 7 acquired a majority stake in Ufinet International after Enel exercised a call option, valuing the business at €2.5 billion. The two exits have already netted Cinven a capital gain of €2 billion, with Fund 7 yet to realise its investment.  

Expansion across Latin America 

For Gas Natural Fenosa, Ufinet was a non-core business, operating mostly as a dark fibre network. Cinven saw it could expand Ufinet’s fibre network, particularly in Latin America, and, in the longer term, the scope of its activities to become a market leading digital infrastructure business, as data demand increased for consumers and businesses.  

Under Fund 5’s ownership, Cinven helped management develop and implement a strategy to grow organically at attractive returns on capital and through acquisition, completing five deals. The management team was strengthened with a new Chairman, Chief Financial Officer and Head of Corporate Development. Within four years, Ufinet was operating in 14 countries in Latin America, including Colombia, Panama, Guatemala and Costa Rica, and had increased its network to 49,200km of fibre, employing more than 900 people.  

Strategic partners 

It was time to realise the investment—but the growth potential in Latin America remained compelling. Fund 6 recognised the opportunity to continue the value creation journey and was successful as part of the sales process. The resulting sale process led to a strategic split: the Spanish operations were sold to Antin Infrastructure Partners, while Fund 6 acquired the International business, doubling down on its long-term conviction in Ufinet International. 

“Given the involvement of two Cinven funds, the firm implemented robust governance procedures for the transaction, including establishing information barriers and having separate committees consider and recommend for approval the sale by Fund 5 on the one hand and the acquisition by Fund 6 on the other hand. The deal was approved by the LP Advisory Committees of both Funds.” explains Miguel Segura, Partner at Cinven.  

Cinven also wanted a strategic partner that would complement its own experience – Enel was a good fit. Its big South American presence, along with the right permits and licences, would help accelerate the network expansion. Ownership was split with Fund 6 being the majority shareholder, but decisions were made on a 50/50 basis. Enel also took a call option to buy Fund 6 out at a defined price between December 2020 and December 2021. 

Under Fund 6’s ownership, Ufinet continued to expand and diversify its service offering. As Ufinet’s market share grew, so did profits which grew 20% a year between 2018 and 2021 continuing the track record of Fund 5.  

Repeat the success 

When the time came for exercising the call option, rather than buy Fund 6 out, Enel decided it wanted to be a passive investor with Cinven investing alongside. This triggered Fund 6 realising its investment. And in stepped Fund 7.  

Once again, the new ownership structure continued to build on a strong foundation and positioned Ufinet for sustained expansion. “Over the last decade, Ufinet International has expanded both its geographic reach and service offering, establishing itself as the leading independent digital infrastructure platform in Latin America” says Jesus Garcia Gomez, Senior Principal at Cinven. 

“It’s been a privilege working alongside Cinven since 2014. Cinven understands the digital infra industry extremely well and our combined knowledge has put us in pole position to become and maintain the leading neutral operator in Latin America. The partnership we’ve formed has not only created value, but also helped change people’s lives for the better,” says Iñigo Garcia del Cerro Prieto.