TPG acquires Peppertree in digital infrastructure push

SAN FRANCISCO & FORT WORTH, Texas & CHAGRIN FALLS, Ohio - TPG Inc. (NASDAQ: TPG), a prominent alternative asset management firm, has agreed to acquire Peppertree Capital Management, Inc., a specialized digital infrastructure investment firm. The deal, expected to close in the third quarter of 2025, includes up to $242 million in cash and up to $418 million in equity, with additional earnouts based on Peppertree’s future performance potentially worth $300 million.

Peppertree, established in 2004 and managing $7.7 billion in assets, focuses on investments in wireless communications towers and associated infrastructure. The company has made over 175 investments and supported the construction and acquisition of more than 10,000 wireless communication infrastructure assets. Peppertree’s leadership, Howard Mandel and Ryan Lepene, will continue to guide the firm’s investment strategy post-acquisition.

The acquisition will provide TPG with immediate scale in wireless communications tower and network infrastructure development, complementing TPG’s existing Internet, Digital Media & Communications sector. The combined assets under management of TPG and Peppertree will total $253.6 billion, with the transaction expected to enhance TPG’s fee-related earnings and after-tax distributable earnings per share immediately upon closing.

TPG’s CEO, Jon Winkelried, expressed that the acquisition aligns with the firm’s strategic growth into new segments of alternative asset management, highlighting Peppertree’s strong performance and growth potential. Peppertree’s Co-Presidents anticipate that joining TPG will provide the necessary scale and resources to capitalize on market opportunities and deliver value for investors and partners.

TPG’s Partners, David Trujillo and John Flynn, emphasized the importance of high-quality digital infrastructure to support the demands of an increasingly connected world. They believe that the combined insights and expertise of TPG and Peppertree will contribute to building robust digital infrastructure businesses.

The transaction is subject to customary closing conditions and has been approved by TPG’s Board of Directors. Financial advisory services for TPG were provided by BofA Securities, Goldman Sachs, Houlihan Lokey, and Campbell Lutyens, with Weil, Gotshal & Manges LLP as legal counsel. Evercore and Kirkland & Ellis LLP advised Peppertree.

TPG will host a conference call and live webcast on May 7, 2025, to discuss the first quarter financial results and details about the transaction. With TPG’s revenue reaching $3.5 billion in the last twelve months and recent stock price movements showing volatility (-29.4% over the past six months), investors seeking deeper insights can access comprehensive analysis through InvestingPro’s detailed research reports, which provide expert analysis on TPG and 1,400+ other top US stocks. This announcement is based on a press release statement.

In other recent news, TPG Inc. has been at the forefront of several significant developments. The company announced the launch of TPG Sports, a new venture focused on the sports industry, in collaboration with professional golfer Rory McIlroy and his team at Symphony Ventures. This initiative aims to leverage strategic capital and expertise to support the growth of sports intellectual property and operating businesses. In another development, Morgan Stanley downgraded TPG’s stock rating from Overweight to Equalweight, citing concerns over tariff impacts and macroeconomic uncertainties affecting the private equity sector. Despite this downgrade, Morgan Stanley acknowledges TPG’s strong brand and potential for long-term growth in private markets. Additionally, TPG Capital has made a bid exceeding $870 million to acquire the digital banking solutions unit of Nexi SpA, an Italian payment technology firm. The proposal comes amid interest from other parties, including Italian state lender Cassa Depositi e Prestiti SpA, which sees the unit as strategically important for national infrastructure. Discussions around this acquisition are ongoing, with potential collaborations being considered.

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