KKR has invested in wireless infrastructure businesses managed by Associated Partners.
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 fibre 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 US 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data-driven technologies, is expected to stimulate the need for more wireless infrastructure assets and upgrades to outdated parts of existing communications networks.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,” says 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,” says Scott Bruce, managing director of Associated Partners. “We are excited to have KKR partner with us as we expand our businesses.”