Global Tower Management
  • Contrarian Investment
  • Rapid Consolidating Acquisitions
  • Debt Financing
Global Tower Management

As an experienced communications investor, GHP had studied the wireless tower business several times since its creation. Initially, the market opportunity was too nascent; as the industry grew and investor exuberance took hold, GHP refrained from entering the sector due to high entry valuations driven by unreal growth expectations and the industry's easy access to capital. During the early 2000s, the downturn in the telecom market and the ensuing liquidity crunch left the public consolidators and private equity-backed players overleveraged and struggling for solvency as multiples tumbled. Despite that backdrop, GHP took the position that industry fundamentals were still favorable and viewed this as an attractive window to consolidate tower assets. GHP had cultivated a relationship with Marc Ganzi, and in 2003 Ganzi and GHP created Global Tower Partners with the acquisition of a tower portfolio from the industry's largest operator, American Tower. Over the next eighteen months, GHP was able to use its knowledge of the sector to help source and execute 10 additional acquisitions. GHP also provided additional equity and helped arrange over $200 million in debt financing. The combination of market insight, an aggressive M&A strategy, and creative financing enabled GHP and Ganzi to build Global Tower Partners into the largest privately held company in the wireless tower space. When prices rebounded in 2005, Global Tower needed access to cheaper capital. Marc Ganzi and GHP structured a sale of the business to The Blackstone Group that enabled the management team to remain at the helm and continue to build value. Marc Ganzi, "Many investors piled in at high prices, but GHP had the discipline to wait, stay close to the sector and the conviction to sponsor me when others were nervous and unwilling to invest in the industry. When circumstances changed, they were incredibly supportive of the company's cheaper need to access capital, grow the business and to compete effectively."