DigitalBridge dishes on how private equity picks its fiber buys

Private equity companies have steadily become a mainstay in the broadband industry, as they seek a piece of the fiber pie. Jonathan Adelstein, managing director and head of global policy and public investment at DigitalBridge, discussed how firms like his pick a fiber provider to invest in. It’s not just about cost per passing and making sure “that’s under control,” he says, cost per subscriber is a key factor as well. DigitalBridge also looks at a provider’s contract relationships, “making sure that they’re strong, that they can control the supply chain.” That way, DigitalBridge is able to see if a company “can control costs.” In terms of competition, Adelstein said private equity firms are looking for a “sweet spot” in markets where there isn’t a “strong fiber competitor.” Ideally, they’re seeking markets with no fiber presence. Commenting on the general fiber landscape, Adelstein said it’s “sort of a fight for who gets in first”—who becomes the first fiber provider in a territory.