Peppertree Capital Management to Be Acquired by TPG

Rhea-AI Summary

AMG has announced the sale of its minority stake in Peppertree Capital Management to TPG Inc. for approximately $240 million. Peppertree, founded in 2004 by Ryan Lepene and Howard Mandel, specializes in digital infrastructure investments, particularly wireless communications towers. The transaction marks the successful conclusion of AMG's strategic partnership with Peppertree, during which AMG provided capital formation and strategic support to enhance Peppertree's growth. The deal is expected to close in Q3 2025, subject to customary closing conditions.

Positive

• Sale of minority stake in Peppertree to generate $240 million for AMG
• Successful exit and strategic outcome for AMG's investment
• Transaction represents positive return on investment through Peppertree's growth

Negative

• Loss of future revenue stream from Peppertree partnership
• Reduction in AMG's digital infrastructure investment exposure

Marks Successful Culmination of AMG Partnership

WEST PALM BEACH, Fla., May 06, 2025 (GLOBE NEWSWIRE) -- AMG, a strategic partner to leading independent investment management firms globally, today announced that it has entered into an agreement to sell its equity interest in Peppertree Capital Management, Inc. (“Peppertree”) as part of the announced acquisition of Peppertree by TPG Inc.

Founded in 2004 by co-Presidents Ryan Lepene and Howard Mandel, Peppertree is a leading specialized digital infrastructure investment firm with a focus on wireless communications towers. Since AMG’s minority investment, Peppertree has grown and developed its business, including through the support of AMG’s capital formation and strategic capabilities.

“We are so pleased to have partnered with Ryan, Howard, and the Peppertree team, collaborating to magnify the firm’s growth and success, and to have supported Peppertree in accomplishing its strategic objectives,” said Jay C. Horgen, President and Chief Executive Officer of AMG. “AMG’s alignment with the partners of Peppertree, through our minority interest in the business, has resulted in a successful outcome for all stakeholders. We wish the Peppertree team the best going forward.”

“Our partnership with AMG has enhanced our business and contributed to our firm’s ongoing success,” said Mr. Lepene and Mr. Mandel, co-Presidents of Peppertree. “We have greatly valued AMG’s culture of partnership, including the team’s support in our pursuit of a strategic outcome that will benefit our clients and partners.”

Pursuant to the terms of the agreement, AMG is expected to receive total consideration of approximately $240 million.*

The transaction is expected to close in the third quarter of 2025, subject to customary closing conditions.

About AMG

AMG (NYSE: AMG) is a strategic partner to leading independent investment management firms globally. AMG’s strategy is to generate long-term value by investing in high-quality independent partner-owned firms, through a proven partnership approach, and allocating resources across AMG's unique opportunity set to the areas of highest growth and return. Through its distinctive approach, AMG magnifies its Affiliates' existing advantages and actively supports their independence and ownership culture. As of December 31, 2024, AMG’s aggregate assets under management were approximately $708 billion across a diverse range of private markets, liquid alternative, and differentiated long-only investment strategies. For more information, please visit the Company’s website at www.amg.com.

Certain matters discussed in this press release issued by Affiliated Managers Group, Inc. (“AMG” or the “Company”) may constitute forward-looking statements within the meaning of the federal securities laws, and could be impacted by a number of factors, including those described under the section entitled “Risk Factors” in AMG’s most recent Annual Report on Form 10-K, as such factors may be updated from time to time in the Company’s periodic filings with the SEC, which are accessible on the SEC's website at www.sec.gov. AMG undertakes no obligation to publicly update or review any forward-looking statements, whether as a result of new information, future developments or otherwise, except as required by applicable law. This release does not constitute an offer of any products, investment vehicles, or services of any AMG Affiliate. From time to time, AMG may use its website as a distribution channel of material Company information. AMG routinely posts financial and other important information regarding the Company in the Investor Relations section of its website at www.amg.com and encourages investors to consult that section regularly.

* Total consideration is based on the TPG closing share price on May 2, 2025, and includes approximately $102 million in cash, subject to certain closing adjustments, and approximately 2.9 million TPG Class A common shares.

AMG Media & Investor Relations:

Patricia Figueroa
(617) 747-3300

ir@amg.com
pr@amg.com

FAQ

How much is TPG paying for AMG's stake in Peppertree Capital Management?

TPG will pay approximately $240 million to AMG for its minority stake in Peppertree Capital Management.

When is the AMG-TPG Peppertree deal expected to close?

The transaction is expected to close in the third quarter of 2025, subject to customary closing conditions.

What does Peppertree Capital Management specialize in?

Peppertree Capital Management is a specialized digital infrastructure investment firm focusing on wireless communications towers.

Who are the co-Presidents of Peppertree Capital Management?

Ryan Lepene and Howard Mandel are the co-Presidents of Peppertree Capital Management, having founded the firm in 2004.

What was AMG's role in Peppertree Capital Management?

AMG held a minority interest in Peppertree and provided strategic support, including capital formation and strategic capabilities to help grow the business.