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TPG Inc. (NASDAQ: TPG), a global alternative asset management firm based in Fort Worth and San Francisco, announced this week that it had reached a definitive agreement to acquire Ohio-based Peppertree Capital Management, a specialist investment firm focused on wireless communications infrastructure.
The transaction, structured as a cash and equity deal, includes up to $242 million in cash and up to $418 million in equity at closing, subject to customary adjustments. The agreement also includes performance-based earnouts valued at up to $300 million, bringing the total potential value of the deal to $960 million.
Founded in 2004, Peppertree manages $7.7 billion in assets and has supported the construction and acquisition of more than 10,000 wireless communications infrastructure assets through ten flagship funds. The Ohio-based firm specializes in investments tied to wireless towers and related assets such as spectrum licenses, fiber networks, small cells, and rooftop rights.
Upon closing, Peppertree will become part of TPG’s digital infrastructure platform, enhancing the firm’s capabilities in a high-growth sector. Peppertree’s co-presidents Howard Mandel and Ryan Lepene will continue leading the business, along with their existing team, with strategic support from TPG.
TPG said that the acquisition will provide immediate scale in the wireless tower and network infrastructure space and is expected to be immediately accretive to its fee-related earnings and after-tax distributable earnings per share. On an adjusted basis, TPG and Peppertree will have a combined $253.6 billion in assets under management.
Jon Winkelried, CEO of TPG, said the deal represents a significant expansion into digital infrastructure and aligns with the firm’s strategy to grow in segments where it holds a competitive advantage.
“This transaction underscores our continued focus on strategic growth into new segments of alternative asset management where we have a competitive advantage,” said Winkelried.
Peppertree leadership noted that joining TPG will provide expanded resources and reach to continue capitalizing on rising demand for wireless and data infrastructure.
The transaction is expected to close following customary regulatory approvals and closing conditions.