Vertical Bridge REIT, the largest private owner and operator of communications infrastructure in the United States, has announced a $1.5 billion equity investment from global investment firm KKR. The transaction establishes a fully funded, long-term capital structure to support Vertical Bridge’s strategic plan, including organic development and selective mergers and acquisitions. Existing sponsors DigitalBridge and La Caisse also participated in the equity investment and remain committed long-term partners.
Headquartered in Delray Beach, Florida, Vertical Bridge owns and operates a nationwide portfolio of more than 17,000 towers, providing build-to-suit and colocation solutions to the telecommunications industry. The company was the first tower company in the world to achieve CarbonNeutral company certification in 2020 and has been recertified every year since. The investment comes as the convergence of 5G densification, edge compute, and surging data demand is creating structural demand for more and better-located wireless infrastructure.
KKR is funding its investment primarily through its core infrastructure strategy. To date, KKR has invested more than $40 billion in equity in digital infrastructure globally, with a portfolio that includes Vantage Towers in Europe and Pinnacle Towers in the Philippines, and past investments including Telxius and Hivory Towers. The transaction was advised by Centerview Partners as exclusive financial advisor to Vertical Bridge, with Simpson Thacher & Bartlett serving as legal counsel. Barclays and Houlihan Lokey served as financial advisors to KKR, with Kirkland & Ellis as legal counsel.
DigitalBridge is a Boca Raton, Florida-based global alternative asset manager dedicated to digital infrastructure with more than 30 years of investing experience across cell towers, data centers, fiber, small cells, and edge infrastructure. La Caisse, formerly known as CDPQ, is a Montreal-based global investment group managing CA$517 billion in net assets on behalf of 48 depositors representing more than 6 million Quebecers.
KEY QUOTES:
“This transaction provides us with the resources to continue developing our portfolio at scale while maintaining our disciplined, returns-focused approach to capital deployment. 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.”
Ron Bizick, President and CEO, Vertical Bridge
“The convergence of 5G densification, edge compute, and surging data demand is creating a structural need for more and better located wireless infrastructure. Vertical Bridge has built a scaled, high-quality tower platform with a strong track record of execution and a differentiated, partnership-oriented approach, all underpinned by a best-in-class management team. 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.”
Waldemar Szlezak, Global Head of Digital Infrastructure, KKR
“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. We remain confident in the platform and committed to supporting the team as they continue to scale.”
Marc Ganzi, CEO, DigitalBridge
“Vertical Bridge has experienced phenomenal growth these last few years both organically and through acquisitions, reaching a high level of scale and operating maturity. 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.”
Emmanuel Jaclot, Executive Vice-President and Head of Infrastructure and Sustainability, La Caisse
