BCI Acquires Minority Stake in KKR-Backed Pinnacle Towers
British Columbia Investment Management Corporation (BCI), one of the largest institutional investors in Canada, has agreed to acquire a minority stake in Pinnacle Towers, a major independent telecom tower operator in the Philippines.
Pinnacle Towers, established in 2020 to address the increasing demand for telecommunications infrastructure in the Philippines, is backed by global private equity firm KKR.
The PE major, which made its investment in Pinnacle Towers from its Asia Infrastructure Funds I and II, will retain its majority shareholding in Pinnacle Towers following the transaction. Financial details of the deal, which is expected to close by Q3 2025, were not disclosed.
The deal marks BCI’s latest foray into Asia-Pacific infrastructure and supports its strategy of investing in high-growth emerging markets alongside institutional partners, per the announcement.
Lincoln Webb, executive vice president and global head, Infrastructure & Renewable Resources, at BCI, said the investment aligns with the company’s emerging markets strategy of backing high-quality infrastructure assets alongside its institutional partners.
“The Philippines represents a compelling market for long-term capital, especially in essential digital infrastructure services,” Webb added.
BCI Infrastructure & Renewable Resources has a global portfolio with nine active investments in the Asia-Pacific region, including Rakuten Mobile (a leading communications tower company in Japan), Altius (a communications tower company in India), and Cube Highways (the largest toll road operator in India).
Pinnacle Towers has developed a portfolio of around 7,000 towers across the Philippines, combining build-to-suit projects, sale-and-leaseback agreements, and tower management services for leading mobile network operators.
The transaction comes about six months after KKR initiated a private placement for Pinnacle Towers to raise between $300 million and $400 million, according to a MergerMarket report.
The report further said that the deal involves a partial sell-down by KKR, combined with a new equity injection, and that the deal size will depend on the stake offered.
KKR first acquired a stake in Pinnacle Towers in November 2020 for an undisclosed amount. It made the investment through its infrastructure fund.
In 2022, KKR acquired 3,529 telecom towers from Globe Telecom, one of the major telco companies in the Philippines, through Pinnacle’s subsidiary Frontier Tower.
It also announced a deal in March 2023 that would see PLDT, another telco company, selling 1,000 telecommunications towers for more than $200 million.
The PE major then invested an additional $400 million in Pinnacle Towers to further develop and acquire telecom towers in the country.
The Asset also reports BCI takes stake in KKR’s Philippine telecom platform:
The British Columbia Investment Management Corporation ( BCI ) has acquired a minority stake in Pinnacle Towers, a Philippines-based digital infrastructure platform, marking a significant strategic move into Southeast Asia’s fast-evolving telecoms sector.
The deal, executed with global investment firm KKR, positions BCI alongside KKR, which retains its majority stake.
Pinnacle Towers, founded in 2020, has grown to become the largest independent tower operator in the Philippines, with approximately 7,000 towers. The platform specializes in build-to-suit and sale-and-leaseback models, vital strategies for telecom operators looking to scale connectivity efficiently in a high-growth mobile market.
“BCI’s investment is a strong endorsement of our mission,” says Patrick Tangney, Pinnacle Towers’ chairman and CEO. “With BCI and KKR as strategic partners, we are well-positioned to continue driving greater digital connectivity in the Philippines and across the region.”
With this move, BCI adds to its growing Asia-Pacific portfolio, which includes stakes in Japan’s Rakuten Mobile and India’s Altius and Cube Highways.
“The Philippines represents a compelling market for long-term capital,” adds Lincoln Webb, BCI’s executive vice-president. “We’re backing digital infrastructure with strong fundamentals, strong management and strategic relevance to national development.”
KKR, which invested in Pinnacle through its Asia Infrastructure Funds I and II, highlights the platform’s evolution through organic growth and strategic bolt-ons.
Yesterday, BCI issued a press release stating it invested in KKR's tower platform, Pinnacle Towers:
SINGAPORE & VICTORIA, Canada – June 9, 2025 – KKR, a leading global investment firm, British Columbia Investment Management Corporation (“BCI”), and Pinnacle Towers, an Asia-based digital infrastructure platform with a focus on the Philippines, today announced the signing of definitive agreements under which BCI will acquire a minority stake in Pinnacle Towers from KKR, which will remain the majority shareholder.
Pinnacle Towers was established in 2020 to serve the rapidly increasing demand for connectivity and quality telecommunications infrastructure in the Philippines. Led by a highly experienced management team, the platform specializes in executing on Build-to-Suit (“BTS”) telecommunications tower projects, optimizing the use and management of Sale-and-Leaseback (“SLB”) assets with leading mobile network operators, and providing ancillary management services to industry players. In the span of five years, Pinnacle Towers has scaled to become the largest independent tower company in the Philippines with around 7,000 towers.1
Lincoln Webb, Executive Vice President & Global Head, Infrastructure & Renewable Resources, BCI, said, “We are excited to work closely with KKR and Pinnacle’s management team to support the growth of the business. The Philippines represents a compelling market for long-term capital, especially in essential digital infrastructure services. This investment aligns with our emerging markets strategy of backing high-quality infrastructure assets alongside strong institutional partners. We look forward to supporting Pinnacle Towers as it continues to enhance digital connectivity and drive meaningful impact across the Philippines.”
Projesh Banerjea, Managing Director, Infrastructure, KKR, said, “We are very proud of the success that we have achieved with Pinnacle Towers to serve the Philippines’ connectivity needs. Since our initial investment, we have collaborated closely with Pinnacle Towers’ outstanding management team to deepen the platform’s capabilities and scale its presence organically and through bolt-on acquisitions. We are delighted to welcome BCI, who share our long-term vision and commitment to developing critical digital infrastructure, as strategic partners and look forward to building on Pinnacle Towers’ strong growth momentum.”
Patrick Tangney, Chairman and CEO of Pinnacle Towers, said, “Over the last five years, with the support of KKR, Pinnacle Towers has grown to become the leading independent tower company in the Philippines. BCI’s investment marks an important milestone in our journey and is a strong endorsement of our mission. With BCI and KKR as strategic partners, we are well-positioned to continue driving greater digital connectivity in the Philippines and across the region.”
BCI Infrastructure & Renewable Resources has a global portfolio with nine active investments in the Asia-Pacific region, including Rakuten Mobile (a leading communications tower company in Japan), Altius (a leading communications tower company in India), and Cube Highways (the largest toll road operator in India). The program continues to expand its presence in the region with the addition of this minority stake acquisition in Pinnacle Towers.
KKR made its investment in Pinnacle Towers from its Asia Infrastructure Funds I and II. KKR first established its global infrastructure team and strategy in 2008 and has since been one of the most active infrastructure investors around the world. KKR’s Asia Pacific infrastructure platform was established in 2019 and has since organically grown to approximately US$13 billion in assets under management.
The transaction is expected to be completed by Q3 2025, subject to customary regulatory approvals.
1Including sites contracted to build or acquire
BCI is taking a minority stake in Pinnacle Towers, the largest independent tower operator in the Philippines with approximately 7,000 towers across the country, combining build-to-suit projects, sale-and-leaseback agreements, and tower management services for leading mobile network operators.
Established in 2020, KKR has made a series of investments including strategic acquisitions to grow Pinnacle Towers quickly and is now selling a minority stake to BCI which has experience investing in tower operators.
I think it's worth noting this passage from the press release:
KKR made its investment in Pinnacle Towers from its Asia Infrastructure Funds I and II. KKR first established its global infrastructure team and strategy in 2008 and has since been one of the most active infrastructure investors around the world. KKR’s Asia Pacific infrastructure platform was established in 2019 and has since organically grown to approximately US$13 billion in assets under management.
Incredible how fast KKR scaled up its Asia Pacific infrastructure platform.
It was a little over a year ago that KKR announced it closed a US$6.4 billion Asia Pacific Infrastructure Investors II Fund:
- Fund is largest pan-regional infrastructure fund to have been raised for Asia Pacific
- More than half of the Fund already invested or committed across ~10 investments
HONG KONG–(BUSINESS WIRE)– KKR, a leading global investment firm, today announced the final close of KKR Asia Pacific Infrastructure Investors II SCSp (the “Fund”), a US$6.4 billion fund focused on infrastructure-related investments across Asia Pacific.
At close, the Fund is the largest pan-regional infrastructure fund to have been raised for Asia Pacific. This closely follows KKR’s inaugural Asia Pacific-dedicated infrastructure fund, KKR Asia Pacific Infrastructure Investors SCSp, which closed at US$3.9 billion in 2021 as the largest Asia-dedicated pan-regional fund at the time. Since the Fund’s launch, KKR has already invested or committed more than half of its capital across approximately 10 investments. KKR’s Asia Pacific infrastructure platform has organically grown to approximately US$13 billion in assets under management since its inception in 2019.
“Infrastructure is a key pillar of KKR’s global and regional strategy. We are proud to have built and scaled a market-leading platform in Asia Pacific in a short span of time, and are grateful for the continued support by our investors as we close our milestone second pan-regional fund,” said David Luboff, Co-Head of KKR Asia Pacific and Head of Asia Pacific Infrastructure at KKR. “The success of the fundraise is a testament to the confidence that global investors have in our ability to deliver strong risk-adjusted returns and differentiated value-add through our established multi-asset platform, local presence in key markets, and strong ability to collaborate across multiple strategies and the region. Their commitment underscores our shared conviction that Asia Pacific’s infrastructure sector holds tremendous potential over the long term.”
KKR’s infrastructure investment approach brings together a disciplined selection process with distinctive investment sourcing and structuring capabilities executed by a dedicated investment team based in markets across Asia Pacific. In line with this approach, the Fund will focus on critical infrastructure with low volatility and strong downside protection where KKR believes it can add value and achieve attractive risk-adjusted returns by leveraging its global network of industry experts, its highly experienced team in Asia Pacific, and long track record of operational value creation. The Fund has a broad investment mandate across various sectors, including renewables, power and utilities, water and wastewater, digital infrastructure, and transportation, among others.
Hardik Shah, a Partner on KKR’s Infrastructure team based in Mumbai, said, “As Asia accounts for more than 60% of global growth, driven by rising domestic consumption and productivity, rapid urbanization, and an enormous emerging middle class, the need for new infrastructure and sustainable energy sources will continue to accelerate. We believe this backdrop presents a significant opportunity for value-added private infrastructure investors, and we welcome the chance to invest behind the development and success of critical infrastructure across Asia Pacific.”
Keith Kim, a Partner on KKR’s infrastructure team based in Seoul, said, “Our ability to create investment opportunities and successfully fundraise in a challenging macro environment reflects the strength of our localized teams who have a deep understanding of the markets and business landscapes where we invest, as well as KKR's global expertise and capabilities. We are pleased to significantly deepen our commitment to Asia’s infrastructure sector through the Fund.”
The Fund received strong backing from a diverse group of new and existing prominent global investors across the world, including public and corporate pensions, sovereign wealth funds, insurance companies, endowment funds, and asset managers.
Brandon Donnenfeld, a Managing Director in KKR Global Client Solutions added, “KKR has built a differentiated infrastructure investing approach that combines our decades-long experience of being a value-add investor, having localized teams, and maintaining a focus on downside protection. We are honored to have the continued support from our investors and look to continue delivering strong performance for them.”
KKR first established its global infrastructure team and strategy in 2008 and has since been one of the most active infrastructure investors around the world. Today, the Firm manages approximately US$56 billion in assets under management across more than 80 infrastructure investments, and has a team of more than 90 dedicated infrastructure investment professionals globally.
Debevoise & Plimpton LLP represented KKR as primary fund counsel for this fundraise.
About KKR
KKR is a leading global investment firm that offers alternative asset management as well as capital markets and insurance solutions. KKR aims to generate attractive investment returns by following a patient and disciplined investment approach, employing world-class people, and supporting growth in its portfolio companies and communities. KKR sponsors investment funds that invest in private equity, credit and real assets and has strategic partners that manage hedge funds. KKR’s insurance subsidiaries offer retirement, life and reinsurance products under the management of Global Atlantic Financial Group. References to KKR’s investments may include the activities of its sponsored funds and insurance subsidiaries. For additional information about KKR & Co. Inc. (NYSE: KKR), please visit KKR’s website at www.kkr.com. For additional information about Global Atlantic Financial Group, please visit Global Atlantic Financial Group’s website at www.globalatlantic.com.
Recall, back in January, that KKR and PSP acquired AEP's transmission stake for $2.8 billion in a 50-50 partnership (see my comment here).
This deal with BCI just shows how invaluable a strategic partner like KKR is especially in a region like Asia Pacific.
Basically, the landscape is changing fast in infrastructure, more big funds have entered the space over the last five years after the pandemic changed the world and Canada's Maple Eight have changed their approach from direct investors where they control a majority stake to taking a minority stake or entering a 50-50 partnership with the KKRs, Blackstones, Brookfields of this world.
Now, getting back to the deal above, why own towers in the Philippines?
A lot of reasons, if you've been following the tariff discussions down south, you've probably noticed the country is a major manufacturing hub for large American companies like Nike.
It's growing fast, a growing middle class, urbanization and other trends are all leading to more demand for connectivity and digital infrastructure.
Also worth noting Filipinos use the internet to keep in touch with their relatives abroad. 90% of overseas Filipino workers (OFWs) belong to social media networking sites.
So, owning towers in the Philippines is definitely a smart long-term move which is why KKR is there.
And it's not just KKR that has taken notice but it is the largest player there:
Common towers or cell sites that allow co-sharing arrangements between separate telecommunications services is currently being rolled out across the Philippines. The policy for common towers is meant to encourage a rise in investment activities and broad market-led development on the part of ICT providers.
Presently, there are over 20 tower companies with licenses to operate but only six of these companies as having the capabilities, wherewithal, and customer support to secure meaningful build-to-suit (BTS) commitments from mobile network operators for new sites.
- Pinnacle Towers (KKR)
- MIDC - PhilTower (Stonepeak, Macquarie Capital and MIESCOR)
- edotco Group (Axiata)
- EdgePoint Infrastructure (DigitalBridge)
- Unity (Aboitiz Group)
- LBS Digital Infrastructure
In the press release, Lincoln Webb, Executive Vice President & Global Head, Infrastructure & Renewable Resources, BCI, said:
“We are excited to work closely with KKR and Pinnacle’s management team to support the growth of the business. The Philippines represents a compelling market for long-term capital, especially in essential digital infrastructure services. This investment aligns with our emerging markets strategy of backing high-quality infrastructure assets alongside strong institutional partners. We look forward to supporting Pinnacle Towers as it continues to enhance digital connectivity and drive meaningful impact across the Philippines.”
With this move, BCI adds to its growing Asia-Pacific portfolio, which includes stakes in Japan’s Rakuten Mobile and India’s Altius and Cube Highways.
Alright, let me wrap it up by noting BCI and Macquarie Asset Management completed the acquisition of Renewi, a leading waste-to-product company. You can read details of that deal here.
Below, Managing Asia's Christine Tan speaks with Sabin Aboitiz, President & CEO of the Aboitiz Group, as he leads one of the Philippines' oldest conglomerates through an ambitious transformation. Tracing its roots to the abaca fiber trade in the 1800s, the Aboitiz Group now spans energy, banking, food, and real estate—and is setting its sights on becoming the country's first "techglomerate."
Also, Carl Raymond Cruz, the new CEO at Globe Telecom, discusses his targets and business outlook for the Philippine telecommunications company. He also shares his expected timetable for the potential listing of fintech unit GCash with David Ingles and Avril Hong on "Bloomberg: The China Show" (April 2025).
Lastly, In this "Independent Thinkers on Digital" episode, Colin Christie discusses the Philippines' success with #SMS and social media, the #5G development driven by social media demand, and the government's role in telecom. He also explores #AI's impact on healthcare administration. For more insights and discussions on digital innovation in the Philippines, tune into this episode of Independent Thinkers on Digital (January 2024).
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