Global alternative asset management firm TPG has agreed to acquire Peppertree Capital Management, a specialized digital infrastructure investment firm with a focus on wireless communications towers, in a cash-and-equity transaction estimated to include up to $242 million in cash and up to $418 million in equity.

The transaction also includes earnouts based on Peppertree’s future performance valued at up to $300 million, said TPG, which has headquarters in Fort Worth and San Francisco.

“With its deep industry expertise, talented team, and portfolio of high-quality assets, Peppertree represents TPG’s further expansion into the digital infrastructure space, where we see significant potential to grow our capabilities over time,” TPG CEO Jon Winkelried said in a statement. “This transaction underscores our continued focus on strategic growth into new segments of alternative asset management where we have a competitive advantage, creating new investment opportunities for our clients and driving value for our shareholders. The Peppertree team shares our commitment to entrepreneurship, innovation, and investing excellence, and we look forward to welcoming them to TPG at an exciting time for our firm.”

Peppertree has $7.7B in assets under management

Peppertree, which was founded in 2004 and has $7.7 billion in assets under management, invests in wireless communications towers and related critical communication infrastructure assets to address evolving network and data demand worldwide.

Peppertree has made more than 175 investments via 10 flagship funds, supporting the construction and acquisition of more than 10,000 wireless communication infrastructure assets as a preferred capital source to developers.

TPG said that as a strategic partner to tower developers, Peppertree is well-positioned to identify new tower development and expansion opportunities across key markets and adjacent network-related assets, including spectrum licenses, fiber networks, distributed antenna systems, small cells, and ground and rooftop rights.

Peppertree has achieved significant growth since inception, while maintaining strong performance and significant fundraising momentum through various market cycles, TPG said.

The firm said that Peppertree co-presidents Howard Mandel and Ryan Lepene will continue to lead Peppertree’s investing strategy, with additional support from TPG, alongside Peppertree’s existing team of investment and operational professionals.

TPG said that upon the close of the transaction, it will provide TPG immediate scale in wireless communications tower and network infrastructure development, a core subset of the growing digital infrastructure sector.

The firm said that scale should be highly complementary to its existing cross-platform leadership in the Internet, Digital Media & Communications (IDMC) sector.

TPG and Peppertree have a combined assets under management of $253.6 billion on an as adjusted basis, and the transaction is expected to be immediately accretive to TPG’s fee-related earnings and after-tax distributable earnings per share upon closing.

“Over the last two decades, Peppertree has built deep relationships with our portfolio companies and investors, helping them effectively navigate the evolving wireless network landscape and respond to surging data demand. Joining TPG’s global alternatives platform will provide us with the additional scale and resources needed to capitalize on significant opportunities across the markets we operate in,” Peppertree co-presidents Mandel and Lepene said in a statement. “We look forward to joining TPG’s world-class team and continuing to invest in high-quality digital infrastructure assets, while delivering meaningful value for our investors and development partners, and growth opportunities for our employees.”

David Trujillo and John Flynn, partners at TPG, said the deal creates a strong partnership.

“Our increasingly connected world requires wireless networks and supportive communication infrastructure capable of delivering fast, reliable, and secure data transmission,” the partners said in a joint statement. “Peppertree’s track record of investing in high-quality wireless communications towers and critical digital infrastructure assets, combined with TPG’s thematic investing approach and legacy of scaling innovative internet and communications companies, positions us to leverage our collective insights and expertise to build high-quality, growing digital infrastructure-related businesses.

The transaction is expected to close in Q3 2025.

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