Vertical Bridge REIT, LLC, largest private owner and operator of wireless communications infrastructure in the United States, has secured a US$ 1.5 billion equity investment from KKR, a global investment firm. This deal will fund expansion and reshape the tower operator’s long-term capital structure as Vertical Bridge continues expanding its portfolio and pursuing acquisitions while maintaining a focus on returns.
According to a press release, the investment makes KKR a new shareholder alongside existing backers DigitalBridge, a global alternative asset manager, and La Caisse, a global investment group, both of which also participated. Vertical Bridge owns and operates over 17,000 communications towers across the United States.
Ron Bizick, President and CEO, Vertical Bridge, said, “We are pleased to have KKR as an experienced, long-term investor as we expand our platform, advance organic development, and selectively pursue M&A opportunities that strengthen our portfolio, while continuing to deliver the agile, customer-focused approach that defines Vertical Bridge.”
KKR pointed to broader industry trends driving the investment, including rising demand for wireless infrastructure linked to 5G deployment and increased data usage.
Waldemar Szlezak, Global Head of Digital Infrastructure, KKR, said, “The convergence of 5G densification, edge compute, and surging data demand is creating a structural need for more and better located wireless infrastructure, this investment builds upon KKR’s foundation as a leading investor in mission-critical digital infrastructure, and we look forward to supporting the company’s next phase of growth.”
Existing investors signalled their continued support for Vertical Bridge’s growth strategy.
Marc Ganzi, CEO, DigitalBridge, said, “DigitalBridge is proud to continue supporting Vertical Bridge alongside our long-standing investment partner La Caisse and now KKR, Vertical Bridge’s disciplined growth strategy, operational excellence, and focus on partnership have consistently positioned the company to meet increasing demand for communications infrastructure.”
Emmanuel Jaclot, Executive Vice-President and Head of Infrastructure and Sustainability, La Caisse, said, “Since our initial investment alongside DigitalBridge, the company has consistently executed through market cycles, and the addition of a strategic partner like KKR reinforces a capital base built for the long term and aligned with the needs of critical connectivity infrastructure.”
KKR has invested more than US$ 40 billion in digital infrastructure equity globally, including stakes in tower operators such as Vantage Towers in Europe and Pinnacle Towers in the Philippines with previous investments in Telxius and Hivory Towers. This new investment will be funded primarily through its core infrastructure strategy.
Centerview Partners acted as financial advisor to Vertical Bridge, with Simpson Thacher & Bartlett as legal counsel. KKR was advised by Barclays and Houlihan Lokey, with Kirkland & Ellis serving as legal advisor.