Largest independent infrastructure firm, with approximately $71.2 billion of assets under management, expands global platform

ABU DHABI & NEW YORK – September 18, 2024 – Stonepeak, a leading alternative investment firm specializing in infrastructure and real assets, today announced the opening of an office in Abu Dhabi, United Arab Emirates (UAE), having received the Financial Services Permission (FSP) from the Financial Services Regulatory Authority (FSRA) of Abu Dhabi Global Market (ADGM) to arrange and advise on investments in the UAE. The firm plans to utilize its local presence to expand its network for potential investment opportunities, better serve its partners in the region, and continue to build key relationships.

Hajir Naghdy, Senior Managing Director and Head of Asia and the Middle East at Stonepeak, said: “We are excited to establish our presence in Abu Dhabi, and specifically within ADGM, an increasingly important hub for the global investment management industry. This expansion reflects our deep commitment to Abu Dhabi and the broader Middle East, enabling us to work more closely with our partners and offer better access to Stonepeak’s global infrastructure platform.”

Arvind Ramamurthy, Chief of Market Development at ADGM, said: “ADGM is pleased to welcome Stonepeak to one of the world’s largest international financial centres and the region’s fastest-growing asset management hub. With robust regulations for alternative investment entities, a comprehensive ecosystem for asset management and a vibrant community based in the heart of the ‘Capital of Capital,’ Abu Dhabi, ADGM provides an ideal environment for Stonepeak’s regional expansion. We look forward to the unique offerings they will bring to their partners and investors in Abu Dhabi and beyond.”

In addition to its newly established presence in Abu Dhabi, Stonepeak employs more than 250 people in New York, Houston, London, Hong Kong, Seoul, Singapore, Sydney, and Tokyo. The firm manages approximately $71.2 billion in assets on behalf of its partners.

About Stonepeak

Stonepeak is a leading alternative investment firm specializing in infrastructure and real assets with approximately $71.2 billion of assets under management. Through its investment in defensive, hard-asset businesses globally, Stonepeak aims to create value for its investors and portfolio companies, with a focus on downside protection and strong risk-adjusted returns. Stonepeak, as sponsor of private equity and credit investment vehicles, provides capital, operational support, and committed partnership to grow investments in its target sectors, which include communications, energy and energy transition, transport and logistics, and real estate. Stonepeak is headquartered in New York with offices in Houston, London, Hong Kong, Singapore, Sydney, and Abu Dhabi. For more information, please visit www.stonepeak.com.

Contacts
Kate Beers / Maya Brounstein
corporatecomms@stonepeak.com
+1 (646) 540-5225

• Apollo Funds to become a non-controlling shareholder in bp Pipelines TAP Limited, an entity which holds a 20% stake in Trans Adriatic Pipeline AG
• Provides Apollo exposure to a top energy asset; allows bp to unlock near-term value and capital for efficient reallocation
• Separately, bp and Apollo are exploring greater strategic cooperation, including energy transition opportunities

bp (NYSE: BP, LSE: BP.L) and Apollo (NYSE: APO) today announce an agreement for Apollo-managed funds (the “Apollo Funds”) to purchase a non-controlling stake in bp Pipelines TAP Limited, the bp subsidiary that holds a 20% share in Trans Adriatic Pipeline AG (TAP) in a transaction valued at approximately $1 billion. Upon completion, bp will remain the controlling shareholder of bp Pipelines TAP Limited.

Trans Adriatic Pipeline AG is the owner and operator of a key infrastructure asset for meeting European energy demand – the final 880-kilometre leg of the Southern Gas Corridor pipeline system that transports natural gas from the bp-operated Shah Deniz gas field in the Azerbaijan sector of the Caspian Sea to markets in Europe such as Greece and Italy.

bp and Apollo will also look to partner on additional investment opportunities, including potential co-operation in both gas and low carbon energy assets, and infrastructure.

William Lin, bp EVP gas and low carbon energy: “We are very pleased to come together with Apollo on this key piece of Europe’s energy infrastructure. Importantly, while bringing in a new investor, this does not diminish bp’s role in a strategic asset for our Azerbaijan gas business. We see great potential in building innovative arrangements such as this and look forward to continuing to explore further opportunities with Apollo through growing this collaborative relationship.”

Skardon Baker, Apollo Partner: “We are pleased to partner with bp on an agreement that can provide our investors with long-term exposure to an industry-leading infrastructure asset with a stable cash flow profile, while allowing bp to meet its objectives of retaining control and executing on its capital efficiency strategy.”

Leslie Mapondera, Apollo Partner: “This innovative transaction structure is indicative of the types of bespoke solutions we can provide at Apollo, and we believe we are ideally positioned to execute on additional strategic transactions with bp. Together, we see more potential opportunities, as we look to leverage Apollo’s long-term capital and sustainability & infrastructure investment expertise to partner with bp on its strategic plans, including energy transition opportunities.”

The proceeds from the transaction will contribute to bp’s 2024 divestment and other proceeds target of $2-3 billion, part of the company’s disciplined financial frame. The transaction is expected to close in 4Q 2024, subject to customary regulatory and partner approvals required.

About Apollo

Apollo is a high-growth, global alternative asset manager. In our asset management business, we seek to provide our clients excess return at every point along the risk-reward spectrum from investment grade to private equity with a focus on three investing strategies: yield, hybrid, and equity. For more than three decades, our investing expertise across our fully integrated platform has served the financial return needs of our clients and provided businesses with innovative capital solutions for growth. Through Athene, our retirement services business, we specialize in helping clients achieve financial security by providing a suite of retirement savings products and acting as a solutions provider to institutions. Our patient, creative, and knowledgeable approach to investing aligns our clients, businesses we invest in, our employees, and the communities we impact, to expand opportunity and achieve positive outcomes. As of June 30, 2024, Apollo had approximately $696 billion of assets under management. To learn more, please visit www.apollo.com.

About bp

Visit www.bp.com

Cautionary statement

In order to utilize the ‘safe harbor’ provisions of the United States Private Securities Litigation Reform Act of 1995 (the ‘PSLRA’) and the general doctrine of cautionary statements, bp is providing the following cautionary statement.

This document contains certain forecasts, projections, forward-looking statements and expectations in relation to the completion of the transaction described, including the outcome and timing of regulatory and partner approvals – that is, statements related to future, not past events and circumstances – with respect to the financial condition, results of operations and businesses of bp and certain of the plans and objectives of bp with respect to these items. These statements are generally, but not always, identified by the use of words such as ‘will’, ‘expects’, ‘is expected to’, ‘targets’, ‘aims’, ‘should’, ‘may’, ‘objective’, ‘is likely to’, ‘intends’, ‘believes’, ‘anticipates’, ‘plans’, ‘we see’ or similar expressions. By their nature, forward-looking statements involve risk and uncertainty because they relate to events and depend on circumstances that will or may occur in the future and are outside the control of bp. Actual results or outcomes, may differ materially from those expressed in such statements, depending on a variety of factors, including the risk factors discussed under “Risk factors” in bp’s most recent Annual Report and Form 20-F as filed with the US Securities and Exchange Commission and in any of our more recent public reports.

Our most recent Annual Report and Form 20-F and other period filings are available on our website at www.bp.com, ‎or can be obtained from the SEC by calling 1-800-SEC-0330 or on its website at www.sec.gov.‎

Contacts 

Noah Gunn
Global Head of Investor Relations
Apollo Global Management, Inc.
(212) 822-0540
IR@apollo.com

Joanna Rose
Global Head of Corporate Communications
Apollo Global Management, Inc.
(212) 822-0491
Communications@apollo.com / EuropeanMedia@apollo.com

The fiber-to-the-home market is expected to grow with the rise in streaming TV and other factors contributing to that growth.

Earlier this year, while explaining Platinum Equity’s investment in broadband provider Tak Communications, Managing Director Krasner is quick to note that Amazon Prime Video’s airing of an NFL playoff game earlier this year – with 23 million viewers – was the most-streamed live event in U.S. history. Also, the NBA is nearing a deal with Amazon that would make the streaming behemoth a broadcast partner.

With providers expected to make more content only available via streaming, viewers are expected to continue following. For an optimal viewing experience, fiber is considered the best option.

Krasner has an anecdote that lands even closer to home to explain fiber preference. He recalled his former house, which had access to fiber.

“I think fiber has proven to be the best way to get the internet at home,” Krasner said. “If you have access to fiber at your house, which I don’t right now, you have to use a cable modem and it stinks.

“My old house had access to AT&T fiber, and I think it was just faster.”

Platinum Equity announced a “significant investment” in TAK Communications, a national provider of communications and broadband infrastructure services, in March. Headquartered in Sioux Falls, S.D., TAK provides fiber and broadband network services, last-mile connectivity and other solutions for the broadband and telecommunications industries.

“TAK has built an impressive business with national scale that today provides full end-to-end capabilities across the network deployment value chain,” Platinum Equity Co-President Jacob Kotzubei said in the release announcing the investment. “Fiber is the backbone of key technologies used to deliver broadband internet and wireless connectivity and we believe that demand for bandwidth will only continue to grow.”

The investment is another example of the firm investing in a founder- or family-owned company as Executive Chairman Micah Mauney established the company in 2004. Mad Engine, L&R Distributors and Arrow International are companies under the Platinum Equity umbrella with similar origin stories.

Mauney said: “I am proud of everything we have built over the last 20 years and am confident Platinum will be an outstanding partner for our next phase of growth. Platinum’s operations expertise is well suited to help us take the next step in delivering the very best customer experience, growing our amazing team members, and strengthening our goal in building America’s best communication services provider for our current and future customers.”

Platinum Equity’s Small Cap team led the TAK investment. The company’s owners and management retained a significant ownership stake in TAK and continue to lead the company.

Kotzubei and Krasner provided other details about the investment.

(Questions and answers have been edited for length and clarity).

Q:  Why did Platinum do this deal?

Kotzubei: Over the last decade the rest of the world has transitioned to a fiber-based infrastructure, but the U.S. is meaningfully behind in its deployment and isn’t expected to reach significant penetration for at least a decade – likely more. Fiber typically outperforms broadband solutions today and have more upside potential. The major telecoms – including AT&T – have all publicly reiterated their commitment to fiber. The business also shows a proven model for M&A growth.

Krasner: The founder sees a tremendous amount of growth potential in his business, but he knows he needs a financial partner to realize it. He was willing to roll a substantial part of his equity value in the transaction, and I think he really wanted to align with us because of the financial and people horsepower that he believes we can bring to his business.

Q: Who are TAK’s customers?

Krasner: It’s really the telecoms and the cable companies. Comcast and Charter are TAK’s two largest customers, but they will also do work for most of the mid-sized telecom and cable companies, anyone who’s supplying internet services to households around the U.S.

Q: Founder-owned companies are a consistent source of business for Platinum Equity. Why?

Kotzubei: Some of it goes back to (Platinum Equity Founder and CEO) Tom Gores. We relate to them because of how Tom founded Platinum. In the beginning, it was truly a family business, and that ethos remained as the firm has grown. It’s about what we stand for as an organization and why we’re a good partner for these family-owned businesses.

Specifically, we have always valued the things that we think founders value in their businesses, which is an ability to be nimble, not bureaucratic. It’s an ability to make quick decisions, an ability to really focus on the human side of what makes these businesses valuable, helping people feel appreciated. This translates well to founders who care about those kinds of characteristics in a business partner.

Krasner:  What we’re finding to be attractive investment opportunities are family-owned companies that really are not well-managed. From that perspective, they are very much like carveouts from the Fortune 1000. There’s a lot of parallels in founder-owned businesses and carve-outs. They’re not well-managed, maybe for different reasons, but the results are the same. Then there is the second bucket of family-owned businesses, like TAK, that have real growth prospects, but don’t have the capital or the human capital to realize those goals.

Q: How did Platinum become the preferred buyer?

Krasner: Like with similar transactions in the past, I think we won in part because the founder developed a relationship with us. He sees the horsepower that Platinum could bring to his business. He had opportunities to sell it to more strategic buyers, but he’d be selling a hundred percent in that case. He doesn’t want to sell a hundred percent, so he was willing to take less money now so long as he could have a substantial part of the equity going forward. He believes that’s ultimately going to be worth more in a few years than if he just sold out. I hope he’s right.

Q: Will this investment generate M&A activity?

Krasner: There are several regional large players, and TAK is one. There are still small service providers out there that just cannot grow out of their geographic region. The way TAK has grown historically is through small add-ons, and we certainly expect to continue to expand TAK’s geographic presence.

Q: Why is Platinum Equity a good operational fit for these deals?

Kotzubei: These businesses get the benefit of being affiliated with a firm that has 50-plus companies in many sectors around the world. We understand trends, we try to see around corners, which can bring visibility into what’s happening around the globe, what’s happening on these issues of supply chain, issues with inflation. They get that benefit that can help them protect their business or take advantage of opportunities to grow it. The business may be small, but they’re getting the benefit of being part of a really large organization with really large businesses that see everything that’s happening. We like to keep our finger on the pulse of the economy and the supply chain and the capital markets and all these things that as a family business, you probably can’t pay a lot of attention to.

Q: You mentioned other family-owned, Small Cap deals. Any other similarities with previous deals?

Krasner: This is not a Unical or a Tarter Farm & Ranch Equipment, which needed real operational turnarounds. This is more managing growth and maximizing profitability through that growth. I think that’s really what the ops team is going to focus on over the coming year. This is not really a true operationally intensive investment – at least that’s not the intent going in.

Q: What are the downsides here?

Krasner: The growth appears to be on the infrastructure side, the construction side of lane fiber. This would be when a community is growing or a housing development is under construction, or you’re going to build fiber infrastructure so that a whole neighborhood can access fiber to get internet services. This business is new for TAK.

Can they grow this business efficiently? That’s why I say the focus is going to be on profitable growth, not just growth. The risk is that they win work, but they don’t do it in a profitable manner because they don’t have a 30-year history of this type of work.

NPM investment FibreMax, a company specialised in the development and production of extremely strong wound fibre cables, and Associated British Ports (ABP), the largest port operator in the United Kingdom, have signed a Memorandum of Understanding (MoU). This agreement aims to explore development opportunities at ABP’s Port of Swansea in South Wales together with emerging opportunities for the Floating Offshore Wind (FLOW) sector in the Celtic Sea.

FibreMax is renowned for its innovative, patented parallel wound (PWT) technology for synthetic cables. These cables are not only lighter than steel cables but also last five times as long. This technology will allow FibreMax to provide a cutting-edge mooring system solution for floating offshore wind turbines. With the Celtic Sea, located north-east of Ireland, poised to become a major site for green energy generation from floating offshore wind (FLOW) turbines, the region will be a strong driver of demand for the offshore wind supply chain.

The collaboration between FibreMax and ABP is expected to create up to 90 full-time jobs via a new bespoke dockside facility. The project will be a major driver of sustainable green energy solutions as well as economic growth for the region as a whole.

More information is available at the FibreMax website.