Transaction Creates Second-Largest Private
Tower Company in the U.S.
Palistar Capital Expects to Provide Growth
Financing in Excess of $1 Billion to
Combined Platform
Represents the First Realization for Apollo's
Second Flagship Infrastructure Fund
LITTLE
ROCK, Ark., Aug. 30,
2022 /PRNewswire/ -- Harmoni Towers ("Harmoni"),
a portfolio company of Palistar Capital LP ("Palistar"), an
alternative asset manager focused on mission-critical
communications infrastructure, today announced that it has agreed
to acquire Parallel Infrastructure ("Parallel"), a leading tower
platform and build-to-suit provider, from funds managed by
affiliates of Apollo Global Management, Inc. (NYSE: APO)
("Apollo"). Terms were not disclosed. The transaction is subject to
customary closing conditions and is expected to be completed in the
third quarter of 2022.
The transaction creates the fifth largest tower company and the
second largest private independent tower company in the U.S., with
more than 2,000 built and in-construction towers. The combined
company will have locations spanning the country from
coast-to-coast across 41 states, with the capacity to build
hundreds of towers per year in all regions of the U.S.
In 2020, Apollo acquired Parallel through a corporate carve-out
transaction via its second flagship infrastructure fund (AIOF
II). As part of its value creation plan, Apollo stood
up the business as an independent tower platform,
and approximately doubled its size during the following
two years. The sale of Parallel represents the first
realization of AIOF II.
Harmoni is one of the most active tower builders in the U.S.,
with over 1,000 sites constructed or in development. Harmoni owns,
operates, and builds mission-critical communications infrastructure
and is focused on the acquisition and construction of communication
networks. Parallel, based in Charlotte,
North Carolina, designs, builds, owns and manages critical
telecommunications infrastructure, including a cell tower portfolio
of about 1,000 sites, for service providers of all sizes in
partnership with property owners and industry vendors.
Omar Jaffrey, Managing Partner
and Founder of Palistar, said, "Palistar expects, over time, to
deploy in excess of $1 billion via
equity and debt financing into the combined platform in order to
promote the expansion of the business. Building upon our long-term
view of the wireless ecosystem and the continued implementation of
5G and the explosive demand for data, this is a fantastic
opportunity for Harmoni, Parallel, Palistar and our entire
ecosystem of customers and vendors to provide a truly national
footprint to deliver carrier-grade solutions. The team at Apollo
have been excellent stewards of the Parallel business and we are
delighted to have partnered with them on this transaction."
Lawrence Gleason, CEO of Harmoni
Towers, stated: "This transaction is a major milestone in Harmoni's
continued growth and evolution. It enables us to even better serve
our carrier customers with an enhanced and fully scaled base of
installed towers across the country, as well as provide one of the
largest and most robust tower building platforms in the United States. Parallel is a world-class
organization and we could not be more excited about this
acquisition."
Yannis Macheras, CEO of Parallel
Infrastructure, said, "Parallel is thrilled to be rolling into the
Harmoni enterprise, lending its experience, talent and diverse
portfolio to a new, enhanced organization focused on providing
best-in-class service to our customers and landowners. Both
organizations collectively are excited about integrating and
leveraging our complementary attributes, and quickly emerging as
the highest standard for both tower development and ownership."
Dylan Foo, Co-Head of
Infrastructure and Partner at Apollo, said, "We are proud to
announce this important transaction, which represents a successful
exit for our second infrastructure fund and highlights our
corporate carve-out expertise, as well as our commitment to
communications infrastructure and enhancing connectivity in
suburban and rural geographies."
Dave Cohen, Partner at Apollo,
added, "We have been extremely pleased with Parallel's growth and
performance since carving-out and standing up the platform in 2020.
We would like to thank the entire management team for their strong
leadership and positive collaboration. We also wish them continued
success in scaling the business and serving their carrier customers
alongside Harmoni and Palistar."
Palistar and Hamoni were advised by Kirkland & Ellis LLP,
while Apollo and Parallel were advised by Weil, Gotshal &
Manges LLP.
About Harmoni Towers
Harmoni Towers, a portfolio
company of Palistar Capital LP, owns, operates, and builds
mission-critical communications infrastructure. The firm focuses on
the acquisition and construction of communication networks and
works with customers in a wide variety of situations, including
monetizing existing assets and new site development. Harmoni
collaborates with wireless operators to deploy their networks and
build assets while relieving them of the burden of raising
investment capital. Harmoni Towers
is one of the most active tower builders in the U.S., with well
over 1,000 sites constructed or in development. Palistar acquired
Harmoni in June 2020 from Uniti
Group. For details, please visit https://harmonitowers.com/.
About Parallel
Infrastructure
Parallel Infrastructure designs, builds, owns and operates
telecommunications infrastructure of the highest caliber. In
partnership with property owners and industry vendors, we serve
wireless service providers of all sizes. Together, we are creating
a more connected future. For more information, please visit
https://pitowers.com/.
About Palistar Capital
Palistar Capital LP is an alternative asset manager led by
Managing Partner and sole Founder, Omar
Jaffrey, focused on communications infrastructure. The firm
seeks to invest through direct asset ownership as well as by
developing innovative financing solutions to complex problems for
leading global communications companies. To learn more about
Palistar, visit www.palistar.com.
About Apollo
Apollo is a global, high-growth alternative asset manager. In
the asset management business, Apollo seeks to provide its clients
excess return at every point along the risk-reward spectrum from
investment grade to private equity with a focus on three business
strategies: yield, hybrid, and equity. For more than three decades,
Apollo's investing expertise across its fully integrated platform
has served the financial return needs of its clients and provided
businesses with innovative capital solutions for growth. Through
Athene, Apollo's retirement services business, it specializes in
helping clients achieve financial security by providing a suite of
retirement savings products and acting as a solutions provider to
institutions. Apollo's patient, creative, and knowledgeable
approach to investing aligns its clients, businesses it invests in,
its team members, and the communities it impacts, to expand
opportunity and achieve positive outcomes. As of June 30, 2022, Apollo had approximately
$515 billion of assets under
management. To learn more, please visit www.apollo.com.
Media Contacts
Palistar and Harmoni
Steve Bruce / Mary Beth
Grover
ASC Advisors
sbruce@ascadvisors.com / mbgrover@ascadvisors.com
(203) 992-1230
Apollo and Parallel
Joanna
Rose
Global Head of Corporate Communications
Apollo Global Management, Inc.
Communications@apollo.com
(212) 822-0491
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SOURCE Palistar Capital