KKR & Co. L.P.
KKR Invests in Wireless Telecom Infrastructure Businesses
KKR's 11th infrastructure investment helps
expand access to wireless services in rural America
NEW YORK--(BUSINESS WIRE)--
Global investment firm KKR announced today that it has invested in
wireless infrastructure businesses managed by Associated Partners, L.P.
Under the agreements, KKR has made minority investments in PEG
Bandwidth, AP Wireless and AP Towers:
PEG Bandwidth designs, builds and operates Ethernet backhaul
networks connecting wireless communications towers to the data fiber
backbone, principally in rural geographies. The company's networks,
the need for which is driven by significant increases in wireless data
usage, typically replace aging copper lines that connect cell sites to
wireless carriers' core networks.
AP Wireless acquires interests in cell site ground and rooftop
leases in the U.S. and internationally.
AP Towers develops new wireless telecom towers and purchases
selected towers currently in operation.
The explosion of "smart" mobile devices and wireless data from both
consumers and businesses is driving substantial investments in wireless
infrastructure. This dynamic, in addition to constantly evolving
next-generation video and other data-driven technologies, is expected to
stimulate the need for more wireless infrastructure assets and upgrades
to outdated parts of existing communications networks.
"The need for wireless infrastructure will continue to be driven by
increases in wireless data usage that is overwhelming existing network
capacity," said Raj Agrawal, KKR's Head of North American
Infrastructure. "We are excited about the opportunity to partner with
Associated Partners to grow this premier set of businesses with critical
telecom infrastructure assets."
"As the shale revolution is driving the growth of natural gas pipelines
to transport molecules, the advent of the smart phone is driving a
similar wireless explosion to transmit electrons. Wireless communication
networks are an essential component of the nation's infrastructure,"
said Scott Bruce, Managing Director of Associated Partners, L.P. "We are
excited to have KKR partner with us as we expand our businesses."
This transaction represents KKR's eleventh infrastructure investment
overall and fifth in North America since 2010. Other North American
investments include Colonial Pipeline, the largest refined products
pipeline in North America; SunTap Energy, a partnership with Recurrent
Energy that is focused on acquiring solar photovoltaic electric
generating facilities in North America; Bayonne Water & Wastewater
Concession, a joint venture between United Water and KKR to maintain and
operate a 40-year water and wastewater concession from the City of
Bayonne, New Jersey; and SSM Solar, a group of solar photovoltaic energy
projects in Ontario, Canada.
Founded in 1976 and led by Henry
Kravis and George
Roberts, KKR is a leading global investment firm with $90.2
billion in assets under management as of September 30, 2013. With
offices around the world, KKR manages assets through a variety of
investment funds and accounts covering multiple asset classes. KKR seeks
to create value by bringing operational expertise to its portfolio
companies and through active oversight and monitoring of its
investments. KKR complements its investment expertise and strengthens
interactions with fund investors through its client relationships and
capital markets platform. KKR & Co L.P. is publicly traded on the New
York Stock Exchange (NYSE:KKR), and "KKR," as used in this release,
includes its subsidiaries, their managed investment funds and accounts,
and/or their affiliated investment vehicles, as appropriate.
About Associated Partners
Managed by David and Bill Berkman, Associated Partners is a telecom
industry investment vehicle whose strategy is to invest in and operate
wireless communications infrastructure companies that generate secure
and growing cash flows. Associated is comprised of a long-standing core
team of professionals with significant experience in the communications
and infrastructure industries.
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Kristi Huller, 212-230-9722
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