Thompson Street Capital Partners and Cequel III: Acquiring the Future of Data Center Cooling Technology

In a major investment move, Thompson Street Capital Partners (TSCP) and Cequel III have acquired a controlling interest in DDC Cabinet Technology (DDC). This partnership sets the stage for DDC to become a dominant force in the rapidly growing market for cooling infrastructure in high-power density computing environments. With a focus on innovation and scalability, DDC is poised to lead the way in providing efficient and cost-effective cooling solutions for data centers.

DDC Cabinet Technology is a global leader in designing and manufacturing data center cabinet and cooling solutions. Their patented products offer superior cooling options for high-density GPU clusters, which are essential for running AI and other compute-intensive applications. By combining the efficiency of water cooling with the flexibility of traditional air cooling, DDC's hybrid approach provides a unique solution that eliminates the need for direct liquid cooling while accommodating higher power densities.

The market for cooling infrastructure in AI-based computing environments is experiencing explosive growth, and DDC's proprietary solution places them at the forefront of this category. This strategic acquisition by TSCP and Cequel III will provide the necessary growth capital for DDC to scale and establish itself as a leader in this highly attractive market.

As part of the transaction, Keith Markley will assume the role of Chief Executive Officer at DDC Cabinet Technology, effective February 5. Markley brings with him 30 years of experience in the telecommunications and data center sectors, having previously served as Executive Vice President, Data Center Operations at TierPoint. TierPoint is a major customer of DDC Cabinet Technology and a leading provider of secure, connected IT infrastructure solutions. With the support of TSCP and Cequel III, DDC is well-positioned to meet the growing demands of high-density data centers.

The legal advisory roles in this transaction were handled by Hogan Lovells US LLP for Cequel III, Kirkland & Ellis LLP for Thompson Street Capital Partners, and VLP Law Group LLP for DDC. Additionally, DH Capital, a division of Citizens JMP Securities, LLC, served as the financial advisor to DDC.

Thompson Street Capital Partners (TSCP) is a middle-market private equity firm based in St. Louis, Missouri. They specialize in transforming exceptional businesses into market leaders in sectors such as life sciences and healthcare, software and technology, and business and consumer services and products. TSCP works closely with management teams to accelerate growth and increase value through organic expansion and strategic acquisitions.

Cequel III is a private investment firm also based in St. Louis, Missouri. With a strong track record of successful transactions totaling over $40 billion, Cequel III has helped build industry-leading companies through operational excellence and a commitment to superior customer service. Their expertise spans various sectors including real estate, healthcare, technology, and business services, making them a reliable investment partner for growth-oriented companies in the lower-mid-market segment.

The partnership between Thompson Street Capital Partners and Cequel III marks a significant milestone for DDC Cabinet Technology. With the backing of these experienced investors, DDC is well-positioned to capitalize on the growing demand for efficient cooling solutions in high-power density computing environments. Their innovative products and strategic vision position them for success in the data center industry's future.