Harmoni Towers Agrees to Acquire Parallel Infrastructure from Apollo's Second Flagship Infrastructure Fund

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.

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/.

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/.

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.

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