Charlotte broadband and telecommunications company Brightspeed has landed a $500 million investment from Abu Dhabi-based Mubadala, it disclosed Tuesday.
After that investment closes, Mubadala will become a minority shareholder alongside investment funds managed by affiliates of Apollo Global Management Inc. (NYSE: APO), the companies said.
Last October, Brightspeed launched as a separate operation owned by Apollo. That's after Brightspeed closed on a $7.5 billion deal to acquire network assets in 20 states from Lumen Technologies Inc. (NYSE: LUMN).
Bob Mudge, CEO at Brightspeed, said the company is still in the early stages of its expansion plans.
Brightspeed started serving its first fiber customers in March. It expects to complete more than 1 million new fiber passings across 17 states by the end of 2023, Charlotte Business Journal reported last fall. With a previously announced $2 billion investment from Apollo for its fiber network goals, Brightspeed aims to provide reliable internet service in more than 3 million underserved homes over the next five years.
"We are grateful for Mubadala's endorsement of Brightspeed's vision and strategy," Mudge said. "The added investment from another well-respected institutional investor is a testament to the value we will create and the connections we will enable for homes and businesses across our 20-state footprint."
Mubadala is a sovereign investor focused on generating sustainable financial returns for the government of Abu Dhabi. The company's $284 billion portfolio spans six continents.
Khaled Abdulla Al Qubaisi, CEO of real estate and infrastructure investments at Mubadala, said the growth and development of digital infrastructure empowers people and the economy to reach their full potential.
"Mubadala sees huge opportunity in supporting Brightspeed's growth strategy in transitioning large swathes of the U.S. to fiber connectivity and promoting digital equity and inclusion," he said in a statement. "We're delighted to be partnering with Apollo and Brightspeed to capitalize on the growth opportunities in fiber deployment and create not only sustainable, long-term value, but also support the digital infrastructure development across the U.S."
Brightspeed's investment from Mubadala comes after the firm moved into its new Charlotte headquarters on Jan. 31. The 27,000-square-foot space is on the seventh floor of Vantage South End's East Tower. It can accommodate about 300 workers and houses the company's legal, marketing, finance and human resources divisions.
The firm said in January it had roughly 100 team members in Charlotte and expects to grow that number in the coming years.