Tillman Infrastructure Is Seeking a $500 Million Capital Injection

Tillman Infrastructure, which counts UBS Asset Management among its investors, is in talks to raise around $500 million in preferred equity to support its growth, according to people with knowledge of the matter.

(Bloomberg) — Tillman Infrastructure, which counts UBS Asset Management among its investors, is in talks to raise around $500 million in preferred equity to support its growth, according to people with knowledge of the matter.

The company, which builds, owns and operates cell towers, is working with advisers to solicit interest from potential investors, said the people, all of whom requested anonymity to discuss confidential information. If an agreement is reached, a transaction could occur before the end of year, one of the people added. Terms aren’t finalized and it’s possible the size or structure of the preferred equity injection could change.

A representative for New York-based Tillman didn’t immediately respond to a request for comment. 

Read More: T-Mobile in Talks to Make Big Broadband Bet With Move Into Fiber

Tillman Infrastructure, led by Chief Executive Officer Suruchi Ahuja, takes on “build-to-suit” projects of any size and has more than 1,000 sites in operation across the US, with an additional 2,500 in development, its website shows. In 2017, the company agreed to build hundreds of cell towers for AT&T Inc. and Verizon Communications Inc. 

Tillman Infrastructure is backed by Tillman Global Holdings, which said last year that it secured a $1 billion commitment from Carlyle Group Inc. to accelerate its investments in Tillman Infrastructure.

Alternative-asset managers have increasingly sought to make tower investments, in part due to the sector’s growth and the predictability of returns. Berkshire Partners this month said it backed TowerNorth, which develops, owns and operates towers in the US and Europe. In September, cell tower operator Cellnex Telecom SA said it sold a 49% stake in its businesses in Denmark and Sweden to Stonepeak. 

Read More: BlackRock, Grain Said to Be Near Phoenix Tower Stake Buy 

More stories like this are available on bloomberg.com

©2023 Bloomberg L.P.