Swiss Life Asset Managers Announces Investment in Telecom Infrastructure Partners and Joins InfraBridge as Key Shareholder

Rhea-AI Summary

Telecom Infrastructure Partners (TIP) has entered into a binding agreement with Swiss Life Asset Managers for the acquisition of a co-controlling equity stake, aiming to accelerate TIP’s next phase of growth to support global steady demand for mobile sites and connectivity.

Insights

Telecom Industry Analyst

The acquisition of a co-controlling equity stake in Telecom Infrastructure Partners by Swiss Life Asset Managers signifies a strategic move within the telecommunications sector. The investment in TIP, a lease aggregator of telecom sites, underscores the vital role of mobile telecom sites in the digital infrastructure landscape. As demand for mobile connectivity surges, driven by an ever-increasing consumption of mobile data, telecom site leases become critical assets offering long-term revenue streams.

From an industry perspective, the GSM Association's estimate of a $1.5 trillion investment needed in mobile networks by 2030 to sustain data demand growth illustrates the scale of opportunity for companies like TIP. The company's focus on triple net lease agreements provides stability and predictability in cash flows, which is attractive to investors looking for lower-risk infrastructure plays. Furthermore, the North American market has set a precedent for the profitability of land lease aggregation, suggesting that TIP's expansion could replicate similar success in Europe and Latin America.

Overall, this transaction is likely to bolster TIP's market position, enabling it to capitalize on the growing need for robust wireless infrastructure, which in turn could have positive implications for the telecom industry's growth trajectory.

Financial Analyst

Swiss Life Asset Managers' investment in Telecom Infrastructure Partners represents a significant capital infusion into the telecom infrastructure space, with potential implications for both the investing firm and the target company. The focus on long-term lease agreements, spanning 30 to 50 years, aligns with Swiss Life's investment strategy, which typically gravitates towards long-duration, income-generating assets.

For investors, the attractiveness of TIP lies in its potential to generate stable, recurring revenue, a key consideration in the current economic climate where investors may seek shelter in assets with predictable returns. The transaction showcases a growing trend among institutional investors to diversify into real assets, such as digital infrastructure, which can offer a hedge against inflation and a low correlation to traditional equity markets.

The anticipated growth of TIP, supported by this deal, could also lead to increased M&A activity within the sector as competitors and new entrants look to consolidate their positions in a market with rising demand. Stakeholders can expect the transaction, once closed, to potentially enhance TIP's creditworthiness and investment appeal.

Market Research Analyst

With the global lease aggregation market for telecom sites experiencing steady growth, the strategic partnership between Swiss Life Asset Managers and InfraBridge through TIP is poised to tap into this expanding sector. TIP's operational focus on Europe and Latin America presents a diverse geographical footprint that can mitigate risks associated with market-specific fluctuations and regulatory changes.

Examining the broader market dynamics, TIP's expansion could intensify competition among telecom site aggregators, prompting innovation and potentially leading to more favorable lease terms for telecom operators. This could have a downstream effect on the cost of mobile connectivity and the pace of digital infrastructure development. Additionally, the transaction could serve as a bellwether for future investments in the sector, signaling confidence in the stability and growth potential of telecom infrastructure as a key component of the global economy.

It is also important to consider the potential impact on local economies, particularly in Latin America, where infrastructure investment can be a catalyst for economic development and improved connectivity.

The investment aims to accelerate Telecom Infrastructure Partners’ next phase of growth to support global steady demand for mobile sites and connectivity.

LONDON & ZURICH--(BUSINESS WIRE)-- InfraBridge, a leading infrastructure investment manager, and Swiss Life Asset Managers, on behalf of its funds, have entered into a binding agreement for the acquisition by Swiss Life Asset Managers of a co-controlling equity stake in Telecom Infrastructure Partners (“TIP”), a global lease aggregator of telecom sites in Europe and Latin America. This investment includes new equity commitments from Swiss Life Asset Managers to accelerate TIP’s platform expansion.

Established in 2021 and headquartered in London, TIP operates within the global lease aggregation market, targeting telecom sites predominantly across Europe and Latin America. TIP’s business model is focused on the acquisition of triple net lease agreements from individual landlords, granting the company long-term revenue streams for periods of 30 to 50 years.

Mobile telecom sites represent a key component of the digital infrastructure landscape and remain at the forefront of wireless infrastructure. GSM Association estimates that a USD $1.5 trillion investment in mobile networks will be needed by 2030 to meet the exponential growth in global demand for mobile data. Given its global set-up and strong local expertise, TIP is well positioned to capture an increasing share of a steadily growing addressable telecom site lease market.

Gianfranco Saladino, Head Value-add Infrastructure at Swiss Life Asset Managers, said, “We are excited to partner with InfraBridge to support TIP during its next major growth phase. The North American example has shown the true potential of land lease aggregation, and we are thrilled to work with our partners, as well as with Eric Overman and his team, to fast-track TIP’s global expansion.”

“Since we led the establishment of TIP in 2021, we have supported TIP’s rapid scale-up in Europe and Latin America to a fast-growing lease aggregator with over 850 leases and significant backlog. This transaction is testament to our belief in the company's potential and attractive position in the market, and we are delighted to partner with Swiss Life Asset Managers to fuel TIP’s growth further,” said Damian Stanley, Managing Partner at InfraBridge. “We look forward to creating more opportunities for the company’s global employees, clients, and stakeholders.”

Eric Overman, Founding Partner and CEO at TIP, said, “We are excited to welcome Swiss Life Asset Managers as a key shareholder alongside InfraBridge. This new investment recognises TIP’s growth over the last two years and will support our ambitions for TIP to be a global leader in the telecom site lease market.”

Closing of the transaction remains subject to customary regulatory approvals and is expected to close by 2Q 2024.

About Swiss Life Asset Managers

Swiss Life Asset Managers has more than 165 years of experience in managing the assets of the Swiss Life Group. This insurance background has exerted a key influence on the investment philosophy of Swiss Life Asset Managers, which is governed by such principles as value preservation, the generation of consistent and sustainable performance and a responsible approach to risks. Swiss Life Asset Managers offers this proven approach to third-party clients in Switzerland, France, Germany, Luxembourg, the UK, Italy and the Nordic countries. Established in 2011, the Swiss Life Asset Managers Infrastructure Equity platform manages over EUR 10bn in Assets under Management for its clients and partners. The team consists of more than 50 investment specialists with an average of over 20 years industry experience across the senior level members. The platform has made over 70 infrastructure investments, across 12 solutions, in both direct and indirect opportunities across the Energy, Communications, Transportation, Regulated Utilities, Social Infrastructure and Renewable Energy sectors.

As of 30 June 2023 assets under management for third-party clients amount to EUR 114.8 billion. Together with insurance assets for the Swiss Life Group, total assets under management at Swiss Life Asset Managers stood at EUR 265.8 billion. Swiss Life Asset Managers employs more than 2200 people in Europe.

About InfraBridge

InfraBridge is a leading infrastructure investment manager dedicated to investing in mid-market businesses in transportation and logistics, digital infrastructure, and energy transition, among other key sectors. The firm’s investment strategy applies private equity rigor with an active approach to asset management to maximize value and drive returns on behalf of investors. InfraBridge is a division of DigitalBridge Group, Inc. (NYSE: DBRG), a leading global digital infrastructure firm managing a $75 billion portfolio of digital infrastructure assets on behalf of its investors. InfraBridge is headquartered in London, United Kingdom. For more information, visit: www.infrabridge.com

About Telecom Infrastructure Partners

Telecom Infrastructure Partners (TIP) is a leading global telecommunications and digital infrastructure investment firm. TIP offers recipients of rent-for-mobile sites, or similar infrastructure, a large up-front cash payout and professionally manages the leases. TIP is led by Eric Overman who took U.S.-style mobile site lease aggregation international, having founded Wireless Infrastructure Partners (which became known as APWireless after Associated Partners invested). TIP is headquartered in London and has established mobile site lease investment businesses in 16 countries globally. For more information, visit: www.telecom-ip.com

View source version on businesswire.com: https://www.businesswire.com/news/home/20240110175556/en/

InfraBridge

Phone: +1 310-752-5026

ceci.reissmeier@digitalbridge.com

Swiss Life Asset Managers

Communications

Phone: +41 43 547 66 88

communications@swisslife-am.com

Source: InfraBridge

FAQ

What is the latest investment for Telecom Infrastructure Partners (TIP)?

The latest investment involves a binding agreement with Swiss Life Asset Managers for the acquisition of a co-controlling equity stake to accelerate TIP’s next phase of growth.

Where is Telecom Infrastructure Partners (TIP) headquartered?

Telecom Infrastructure Partners (TIP) is headquartered in London.

What is the business model of Telecom Infrastructure Partners (TIP)?

TIP's business model focuses on the acquisition of triple net lease agreements from individual landlords, granting the company long-term revenue streams for periods of 30 to 50 years.

What is the estimated investment needed in mobile networks by 2030?

The GSM Association estimates that a USD $1.5 trillion investment in mobile networks will be needed by 2030 to meet the exponential growth in global demand for mobile data.

Who are the key stakeholders in the latest investment for Telecom Infrastructure Partners (TIP)?

The key stakeholders in the latest investment are Swiss Life Asset Managers, InfraBridge, and Eric Overman and his team.