Key Takeaways
- • Ares Management has assumed full ownership of UK fibre operator Toob after existing shareholders, including the National Digital Infrastructure Fund, transferred their stakes to the private credit firm in a debt-to-equity restructuring.
- • International Public Partnerships transferred its £24.1m ($32.7m) equity stake for a nominal amount, declining to inject additional capital as Toob faces sustained pressure from higher borrowing costs and profitability challenges.
- • Ares is injecting undisclosed new equity into Toob as part of the transaction, leveraging its position as the company's senior lender (which provided approximately £160m of debt financing in 2023) to convert debt obligations into ownership control.
- • The restructuring reflects mounting distress in the UK alternative fibre sector, where competitors have struggled to achieve profitability despite heavy infrastructure investment to challenge BT Group's Openreach dominance.
- • This transaction mirrors earlier sector turmoil: the National Wealth Fund and other lenders accepted substantial losses on nearly £1bn of debt when they took control of rival operator Gigaclear earlier in 2026.
Summary
Ares Management has taken control of UK broadband provider Toob following a debt-to-equity restructuring in which the company's existing shareholders agreed to transfer their stakes to Ares, simultaneously Ares's senior lender. The transaction underscores ongoing financial distress within the UK's alternative fibre operator segment, which has struggled to sustain profitability amid rising capital costs and competitive pressures.
The National Digital Infrastructure Fund, managed by Amber Infrastructure on behalf of investors including the UK's National Wealth Fund and listed infrastructure investor International Public Partnerships (INPP), held the largest shareholder stake in Toob. INPP disclosed in a regulatory filing that it would surrender its £24.1m ($32.7m) equity position to Toob's creditors for a nominal amount, electing not to provide additional capital injections. As part of the restructuring, Ares is injecting an undisclosed sum of new equity to stabilize the operator's balance sheet and support continued operations.
Ares originally extended approximately £160m of debt financing to Toob in 2023. The current transaction effectively converts Ares's secured creditor position into ownership control while simultaneously providing the fibre operator with fresh equity capital—a standard private credit strategy for capitalizing on distressed assets held within an existing lending portfolio.
The Toob restructuring reflects broader sector fragility within the alternative fibre market. These operators have invested heavily in infrastructure to compete with BT Group's Openreach monopoly but have faced consistent headwinds from elevated borrowing costs, slower subscriber growth, and the extended timeline required to reach cash-flow breakeven. The National Wealth Fund has encountered comparable challenges across its UK broadband portfolio: earlier in 2026, it and other lenders assumed control of rival operator Gigaclear after absorbing losses on nearly £1bn of debt, signaling systemic pressure across multiple alternative network operators simultaneously.
The National Digital Infrastructure Fund, managed by Amber Infrastructure on behalf of investors including the UK's National Wealth Fund and listed infrastructure investor International Public Partnerships (INPP), held the largest shareholder stake in Toob. INPP disclosed in a regulatory filing that it would surrender its £24.1m ($32.7m) equity position to Toob's creditors for a nominal amount, electing not to provide additional capital injections. As part of the restructuring, Ares is injecting an undisclosed sum of new equity to stabilize the operator's balance sheet and support continued operations.
Ares originally extended approximately £160m of debt financing to Toob in 2023. The current transaction effectively converts Ares's secured creditor position into ownership control while simultaneously providing the fibre operator with fresh equity capital—a standard private credit strategy for capitalizing on distressed assets held within an existing lending portfolio.
The Toob restructuring reflects broader sector fragility within the alternative fibre market. These operators have invested heavily in infrastructure to compete with BT Group's Openreach monopoly but have faced consistent headwinds from elevated borrowing costs, slower subscriber growth, and the extended timeline required to reach cash-flow breakeven. The National Wealth Fund has encountered comparable challenges across its UK broadband portfolio: earlier in 2026, it and other lenders assumed control of rival operator Gigaclear after absorbing losses on nearly £1bn of debt, signaling systemic pressure across multiple alternative network operators simultaneously.
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