KKR backs Philippines telecom tower operator

Pinnacle aims to deliver high-quality telecom infrastructure services to mobile users domestically and abroad as Southeast Asian demand grows for connectivity that is reliable data-rich, high-speed, and affordable. Within the Philippines, this is expected to include a focus on the fast-growing sub-regions of Visayas and Mindanao.

Pinnacle specializes in build-to-suit telecom projects that provide operators with capital-efficient ways to rapidly expand coverage. The company’s subsidiary, Frontier Tower Associates Philippines, is touted as one of the first independent tower players in the country to secure a provisional license to operate from the Department of Information & Communications Technology.

“The telecommunications sector in the Philippines has grown rapidly in the past few years amid the increasing demand for connectivity, David Luboff, KKR’s head of Asia infrastructure, said in a statement.

“This has led to a resource imbalance and the need to expand existing infrastructure to allow operators to provide better service and coverage to their customers. Our investment in Pinnacle reiterates our commitment to addressing this need and supporting the Philippines’ transition to a connected, digital nation.”

This is KKR’s second infrastructure investment in the Philippines. Earlier this year, it invested PHP7.3 billion ($150 million) in power plant operator First Gen Corporation. The private equity firm has also been active in the country’s mobile services space, having backed two rounds for Voyager Innovations, a financial technology unit of local telecom giant PLDT.

KKR launched its first Asia Pacific infrastructure fund last year with a target of $3 billion and has raised at least $1.5 billion to date. Its third global infrastructure fund closed at $7.4 billion in 2018. Luboff, a former senior managing director of Macquarie Infrastructure and Real Assets, joined the firm last year.

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• Topics
• Southeast Asia
• Infrastructure
• Technology
• Media
• Philippines
• KKR
• TMT