TPG has announced the acquisition of towers-focused Peppertree Capital Management.

The alternative asset management firm TPG announced the deal earlier this week.

TPG said it has agreed to acquire the Peppertree business in a cash and equity transaction estimated to include up to $242m in cash and up to $418m in equity. Additionally, the transaction includes earnouts based on Peppertree’s future performance valued at up to $300m.

Peppertree invests in wireless communications towers and critical communication infrastructure assets. The company, founded in 2004, has $7.7 billion in assets under management.

To date, the company has made more than 175 investments through ten flagship funds, supporting the construction and acquisition of more than 10,000 wireless communication infrastructure assets as a preferred capital source to developers.

Peppertree operates as a strategic partner to tower developers, and covers tower development opportunities that span adjacent network-related assets, including spectrum licenses, fiber networks, distributed antenna systems, small cells, and ground and rooftop rights.

“With its deep industry expertise, talented team, and portfolio of high-quality assets, Peppertree represents TPG’s further expansion into the digital infrastructure space, where we see significant potential to grow our capabilities over time,” said Jon Winkelried, chief executive officer of TPG.

“This transaction underscores our continued focus on strategic growth into new segments of alternative asset management where we have a competitive advantage, creating new investment opportunities for our clients and driving value for our shareholders.”

Peppertree co-presidents Howard Mandel and Ryan Lepene will continue to lead the firm’s investing strategy, with additional support from TPG, alongside Peppertree’s existing team of experienced investment and operational professionals.

TPG noted that once the deal closes, "Peppertree will provide TPG immediate scale in wireless communications tower and network infrastructure development, a core subset of the growing digital infrastructure sector."

“Joining TPG’s global alternatives platform will provide us with the additional scale and resources needed to capitalize on significant opportunities across the markets we operate in,” added Mandel and Lepene in a joint statement.