Tiger Infrastructure Partners Announces Minority Equity Investment in Strategic Venue Partners from Brookfield Asset Management, along with Material Upsizing of Revolving Credit Facility, to Capitalize on Growing Demand for In-Building Wireless Solutions

Rhea-AI Summary

Tiger Infrastructure Partners announced a minority equity investment in Strategic Venue Partners (SVP) by Brookfield Asset Management and its institutional partners. Additionally, there is a material upsizing of SVP's existing Revolving Credit Facility involving current and new commercial bank lenders. These transactions are aimed at leveraging the increasing demand for in-building wireless (IBW) infrastructure.

SVP CEO Justin Marron highlighted the strategic importance of this investment and the expanded credit facility, noting that it validates the rising market demand for SVP's unique wireless connectivity-as-a-service model. SVP provides comprehensive lifecycle management of wireless systems, important for functions across various sectors, including healthcare, hospitality, and higher education.

Emil W. Henry, Tiger Infrastructure CEO, emphasized the value generated by the partnership with Brookfield. Marc H. Blair, COO of Tiger Infrastructure, noted SVP's strong growth in 2024, which includes expanding infrastructure assets and entering new markets. Brookfield's Managing Director Hamish Kidd expressed confidence in SVP's efficient and scalable business model.

Positive

• Brookfield's minority equity investment validates SVP's market demand.
• Material upsizing of SVP's Revolving Credit Facility enhances growth potential.
• SVP demonstrated robust performance in the high-growth IBW sector in 2024.
• Expansion of SVP's infrastructure assets with existing and new customers.
• Partnership with Brookfield brings additional synergies and growth opportunities.

Negative

• None.

Insights

Financial Analyst

The minority stake investment in SVP represents a strategic move by Brookfield Asset Management to expand its digital infrastructure portfolio. While the exact investment amount is undisclosed, this deal aligns with BAM's strategy of targeting essential infrastructure assets with recurring revenue streams. The expanded revolving credit facility provides SVP with additional growth capital, indicating potential for scalable returns. The in-building wireless infrastructure sector offers attractive characteristics: high barriers to entry, long-term contracts and stable cash flows from enterprise customers. The "connectivity-as-a-service" model generates predictable recurring revenues, similar to a utility business model. This transaction should positively contribute to BAM's $1 trillion AUM portfolio, though the impact is likely minimal given the minority stake nature.

Tech Infrastructure Specialist

The strategic value of this investment lies in SVP's positioning within the growing in-building wireless (IBW) infrastructure market. Their "wireless connectivity as a service" model addresses a critical need as enterprises increasingly rely on robust indoor wireless coverage. The company's full lifecycle management approach, including future technology upgrades, provides a compelling value proposition for enterprises seeking to avoid large upfront capital expenditures. SVP's expansion into healthcare DAS portfolios and diverse sectors demonstrates strong market penetration. The backing of both Tiger Infrastructure and now Brookfield significantly strengthens SVP's competitive position in the IBW space, particularly as 5G adoption drives demand for enhanced indoor coverage solutions.

NEW YORK and LONDON, Dec. 11, 2024 /PRNewswire/ -- Tiger Infrastructure Partners (Tiger Infrastructure) today announced that Brookfield Asset Management and its institutional partners (Brookfield), one of the largest owners and operators of infrastructure globally, has made a minority equity investment in its portfolio company Strategic Venue Partners (SVP). Tiger also announced a material upsizing of SVP's existing Revolving Credit Facility with current and additional commercial bank lenders. Together, these strategic financing transactions position SVP to capitalize on growing demand for its essential in-building wireless (IBW) infrastructure.

"This investment by a leading infrastructure investor alongside Tiger Infrastructure further validates the rising market demand for SVP's unique wireless connectivity as a service model."

Justin Marron, CEO of SVP, said, "This investment by a leading investor in infrastructure, alongside our sponsor, Tiger Infrastructure, combined with our larger credit facility further validates the rising market demand for SVP's unique wireless connectivity as a service model. We provide our customers with robust, cutting-edge in-building wireless infrastructure in a timely, turnkey manner without upfront capital expenditures. SVP offers a full lifecycle management of these essential systems, including upgrades that de-risk our customers' future technology needs."

Marron continued, "SVP's design is unique for each customer's end use and is increasingly recognized by customers and their stakeholders as essential to mission-critical functions such as customer and employee experiences, the optimization of key business operating systems, timely dissemination of information, emergency communications and regulatory compliance across sectors ranging from healthcare to hospitality, and higher education to data centers. Some of our customers call it a 'fourth utility'."

Tiger Infrastructure CEO and CIO Emil W. Henry said, "Brookfield has been a reliable partner to Tiger Infrastructure over the years. Relationships like this one generate value across Tiger Infrastructure's entire portfolio in many different ways, and we are especially pleased to expand the relationship into a digital infrastructure arena, where Brookfield can bring meaningful synergies to SVP across its wide-ranging portfolio."

Marc H. Blair, COO and Senior Managing Director of Tiger Infrastructure said, "SVP continues to demonstrate robust performance within the high-growth IBW sector. 2024 has been another year of strong growth that further demonstrates SVP's attractive, highly efficient and rapidly scalable business model. Specifically, in 2024, SVP expanded its infrastructure assets with existing customers and also added IBW infrastructure at new relationships too, including executing its long-term contract offering with one of the largest DAS portfolios in healthcare. Today's announced transactions provide additional growth capital that positions SVP to further expand its infrastructure portfolio by pursuing additional origination efforts and entering new markets."

Hamish Kidd, Managing Director at Brookfield, said, "We have significant experience investing in digital infrastructure, including wireless solutions, and were quickly able to appreciate the value of the franchise that Tiger Infrastructure and SVP have built in the IBW sector. We were attracted to SVP's efficient and differentiated offering, the annual recurring revenue business model and the exceptional customer credit quality. We look forward to supporting SVP's growth going forward."

Marron added: "Since our inception, Tiger Infrastructure has been a hands-on, value-add partner and advisor that has helped SVP establish and buttress our first-mover advantages. Partnering now with another blue-chip infrastructure investor in Brookfield and expanding our access to attractively-priced commercial bank debt will further enhance our growth trajectory."

TD Securities acted as sole financial advisor to SVP on the minority equity investment and was the left lead arranger and sole bookrunner on the upsized credit facility.

About SVP

Strategic Venue Partners is a leading provider of in-building wireless connectivity-as-a-service. The company partners with venues and carriers to design, develop, install, own, operate and upgrade bespoke in-building wireless systems, utilizing the latest technologies such as Distributed Antenna Systems, Public Safety Systems, Citizens Broadband Radio Service (OnGo®) / Private LTE, Real Time Location Services, Fiber assets, Wi-Fi and Internet Protocol Television. Our proprietary, utility-based model actively builds a future in which underserved enterprise venues can grow, evolve and ignite their own technological futures through robust network connectivity, without financial barriers and backed by a trusted, consultative partner that is there with them for every step of the way. Join us in unleashing the power of wireless connectivity to optimize your operations and fuel your future growth. Visit www.strategicvenue.com.

About Tiger Infrastructure Partners

Tiger Infrastructure Partners is an innovative private equity firm focused on providing transformational growth capital to middle market infrastructure companies. Tiger Infrastructure's value-add approach targets growth investments across the Digital Infrastructure, Energy Transition and Transportation sectors in North America and Europe, where Tiger Infrastructure believes strong tailwinds are driving demand for new infrastructure. Tiger Infrastructure maintains offices in New York and London. Visit www.tigerinfrastructure.com.

About Brookfield Asset Management

Brookfield Asset Management Ltd. (NYSE: BAM, TSX: BAM) is a leading global alternative asset manager with over $1 trillion of assets under management across renewable power and transition, infrastructure, private equity, real estate, and credit. We invest client capital for the long-term with a focus on real assets and essential service businesses that form the backbone of the global economy.

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SOURCE Tiger Infrastructure Partners

FAQ

What is the significance of Brookfield's minority equity investment in SVP for BAM shareholders?

The investment signifies confidence in SVP's market demand and growth potential in the IBW sector, potentially leading to enhanced returns for BAM shareholders.

How does the upsizing of SVP's Revolving Credit Facility impact its business?

The upsizing provides SVP with additional growth capital, positioning it to expand its infrastructure portfolio and enter new markets.

What are the key growth areas for SVP as mentioned in the press release?

Key growth areas include expanding infrastructure assets with existing customers, adding new relationships, and pursuing additional origination efforts in the IBW sector.

What is the role of Brookfield in SVP's future growth?

Brookfield brings significant experience in digital infrastructure and synergies that will support SVP's growth and expansion.

How did SVP perform in 2024 according to the press release?

SVP demonstrated robust performance in 2024, expanding its infrastructure assets and entering new markets, showcasing its scalable business model.

What are the strategic benefits of the partnership between Tiger Infrastructure and Brookfield for SVP?

The partnership leverages Brookfield's experience and synergies, enhancing SVP's growth trajectory and expanding its access to attractively-priced commercial bank debt.