Tillman FiberCo Gets Up to $500M from Northleaf for Network Expansion

Tillman FiberCo obtained a $200 million investment from funds managed by Toronto-based private equity firm Northleaf Capital Partners to build an open access fiber network. The agreement allows for an additional $300 million if the conditions are met.

Founded in 2021 and based in New York, Tillman FiberCo designs, builds and owns high-speed internet infrastructure. The company is part of the Tillman Global Holdings portfolio, a holding company founded by Sanjiv Ahuja in 2014. The company focuses on investing in and operating telecommunications and energy infrastructure businesses in developed and emerging markets.

Tillman FiberCo is specifically looking to build a position as a wholesale provider of open access fiber networks for residential and business use.

The fiber venture is initially targeting small businesses, single-family homes and apartment buildings in parts of Nevada, Arizona, Colorado, Texas and Florida, according to Bloomberg.

“Tillman FiberCo’s wholesale business model, which is supported by a large anchor customer order, ensures the long-term revenue stability that our investors look for in our infrastructure portfolio,” said Chris Rigobon, Managing Director at Northleaf.

Tillman isn’t the only company seeking open access fiber in the United States. Last year, AT&T partnered with private equity firm BlackRock Alternatives to form Gigapower, which seeks to develop an open-access fiber network to an initial 1.5 million client locations in the United States.

TD Securities served as financial advisor and Kirkland & Ellis served as legal counsel to Northleaf. TAP Advisors served as financial advisor and Sullivan & Cromwell acted as legal counsel to Tillman FiberCo.