Bluepeak Receives Strategic Investment from Ares Management

Rhea-AI Summary

Ares Management's Infrastructure Opportunities and Alternative Credit strategies invest in Bluepeak to accelerate fiber-to-the-home expansion. Bluepeak, acquired by GI Data Infrastructure in 2021, has expanded its regional footprint and constructed a fiber network to over 140,000 new homes. The investment from Ares aims to further accelerate Bluepeak's growth plans across the Great Plains region.

Insights

Telecommunications Industry Analyst

The strategic investment by Ares Management into Bluepeak signifies a pivotal moment for the telecommunications industry, particularly within the fiber broadband sector. Investments of this nature are indicative of the increasing demand for high-speed internet connectivity, a trend accelerated by the growing remote workforce and the proliferation of data-intensive services. Bluepeak's expansion of its fiber network to over 140,000 new homes underlines the substantial market opportunity in the Great Plains region, which has historically been underserved in terms of broadband infrastructure.

From an industry standpoint, the involvement of a seasoned investor like Ares could catalyze further interest and investment in fiber broadband projects, potentially leading to a more competitive landscape. This could benefit consumers through improved services and pricing. However, it also raises the stakes for Bluepeak to efficiently deploy capital to maintain a competitive edge. The long-term implications for Bluepeak hinge on their ability to execute their growth strategy effectively, leveraging the capital injection to expand their footprint while maintaining service quality.

Financial Analyst

The influx of capital from Ares Management is a significant endorsement of Bluepeak's business model and growth trajectory. For stakeholders, the immediate infusion of funds is likely to accelerate expansion plans, which could translate into increased market share and revenue streams. The strategic nature of the investment suggests Ares' confidence in Bluepeak's management and business strategy, potentially leading to a positive reassessment of Bluepeak's valuation by the market.

Analyzing the financial implications, it is essential to monitor how the capital is allocated and the return on investment it generates. The structured investment by Ares may include specific financial covenants or performance milestones that Bluepeak must adhere to. Stakeholders should look for transparency in future financial disclosures to gauge the success of the investment and its impact on Bluepeak's balance sheet.

Market Research Analyst

The partnership between Ares Management and Bluepeak is a strategic move that reflects broader market trends in the telecommunications sector. The demand for reliable, high-speed internet is not just a consumer preference but an economic necessity for communities in the Great Plains and beyond. Market research indicates that investments in infrastructure like fiber broadband can have multiplier effects on local economies, fostering innovation and attracting new businesses.

For Bluepeak, understanding market dynamics and consumer behavior in the regions they are expanding into will be crucial. The company's ability to capitalize on the emerging asset class of fiber networks will depend on their market penetration strategies and the competitive offerings they bring to the table. The partnership with Ares could provide Bluepeak with insights and resources to navigate market challenges effectively and tailor their services to meet the specific needs of their expanding customer base.

Ares Joins Existing Investor GI Data Infrastructure to Help Accelerate Bluepeak's Fiber-to-the-Home Expansion

DENVER, Feb. 29, 2024 /PRNewswire/ -- Bluepeak (the "Company"), a leading provider of fiber broadband to residential and commercial customers in communities across the Great Plains region, today announced that funds managed by Ares Management's Infrastructure Opportunities and Alternative Credit strategies ("Ares") have made a strategic investment into Bluepeak.

Since its 2021 acquisition by GI Data Infrastructure, Bluepeak has expanded its regional footprint across five states and has constructed a fiber network to over 140,000 new homes. The investment from Ares will provide Bluepeak with fresh capital intended to help further accelerate its growth plans across the Great Plains region.

"Bluepeak is committed to providing reliable, high-speed internet and top-tier customer service to our communities," said Rich Fish, CEO of Bluepeak. "We are incredibly proud of the Bluepeak team's accomplishments to date, and we are excited to bring our services to additional communities with the benefit of this capital injection from Ares."

"Bluepeak has developed a differentiated fiber platform that provides efficient, reliable, and critical service to families and businesses across the Great Plains region," said Keith Derman, Co-Head of the Ares Infrastructure Opportunities strategy. "We are pleased to support the Company's experienced management team with this structured investment, which we believe will help accelerate its expansion strategy into several attractive markets."

"Over the past three years, Bluepeak has grown far beyond our initial expectations, and we believe this investment positions the Company for long-term profitable growth," said Mark Prybutok, Managing Director and Co-Head of GI Data Infrastructure. "Ares is an experienced investor in this space, they have approached this investment in a very thoughtful way, and we look forward to a fruitful relationship with them."

"We look forward to working with GI Data Infrastructure and Bluepeak," said Joel Holsinger, Co-Head of the Ares Alternative Credit strategy. "This investment is an example of the collaborative strengths and scale of Ares' platform, bringing together the Infrastructure Opportunities and Alternative Credit strategies to provide Bluepeak with flexible capital tied to an emerging asset class."

Bank Street Group LLC and TD Securities (USA) served as financial advisors to Bluepeak and Simpson Thacher & Bartlett LLP served as legal counsel to the Company. Kirkland & Ellis LLP served as legal counsel to Ares.

About Bluepeak
Bluepeak is a leading provider of fiber broadband to residential and commercial customers across five states in the U.S. Bluepeak is dedicated to providing reliable high-speed internet without the things that get in the way of great service — like red tape, hidden fees, and slow response times. Bluepeak offers up to 5 gigabits of speed for residential customers and 10 gigabits for businesses, meeting the growing needs of its customers in the communities it serves. Visit mybluepeak.com to learn more.

About GI Partners
Founded in 2001, GI Partners is a private investment firm with over 150 employees and offices in San Francisco, New York, Dallas, Chicago, Greenwich, Scottsdale, and London. The firm has raised more than $43 billion in capital and invests on behalf of leading institutional investors around the world through its private equity, real estate, and data infrastructure strategies. The private equity team invests primarily in companies in the healthcare, services, and software sectors. The real estate strategy focuses primarily on technology and life sciences properties as well as other specialized types of real estate. The data infrastructure team invests primarily in hard asset infrastructure businesses underpinning the digital economy. For more information, please visit www.gipartners.com.

About Ares Management Corporation
Ares Management Corporation (NYSE:ARES) is a leading global alternative investment manager offering clients complementary primary and secondary investment solutions across the credit, private equity, real estate and infrastructure asset classes. We seek to provide flexible capital to support businesses and create value for our stakeholders and within our communities. By collaborating across our investment groups, we aim to generate consistent and attractive investment returns throughout market cycles. As of December 31, 2023, Ares Management Corporation's global platform had approximately $419 billion of assets under management, with approximately 2,850 employees operating across North America, Europe, Asia Pacific and the Middle East. For more information, please visit www.aresmgmt.com.

Contacts:

Bluepeak
Jesse Granger, +1-720-703-4315
jesse.granger@mybluepeak.com

GI Partners 
Chris Tofalli, +1-914-834-4334
chris@tofallipr.com
Gretchen Robinson
pr@gipartners.com

Ares Management
Jacob Silber, +1-212-301-0376
media@aresmgmt.com

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SOURCE GI Partners

FAQ

What is the significance of Ares' investment in Bluepeak?

Ares' investment in Bluepeak is aimed at accelerating the company's fiber-to-the-home expansion plans in the Great Plains region.

How many new homes has Bluepeak constructed a fiber network for?

Bluepeak has constructed a fiber network to over 140,000 new homes.

Who is the CEO of Bluepeak?

Rich Fish is the CEO of Bluepeak.

Which companies served as financial advisors and legal counsel in the investment deal?

Bank Street Group LLC and TD Securities (USA) served as financial advisors to Bluepeak, while Simpson Thacher & Bartlett LLP served as legal counsel to the Company. Kirkland & Ellis LLP served as legal counsel to Ares.

What type of services does Bluepeak provide?

Bluepeak provides reliable, high-speed internet and top-tier customer service to communities in the Great Plains region.