Funding big KKR has acquired European pageant operator Superstruct Leisure from non-public fairness agency Windfall Fairness Companions.
As a part of the transaction, Windfall has an possibility to take a position €250 million (approx $267m) into Superstruct.
KKR is making the funding in Superstruct by its European Fund VI, an $8 billion fund that invests within the progress of “main companies”.
UPDATE: An earlier model of this story reported that the deal was value GBP £1.3 billion ($1.64bn at present change charges), citing a report from the Monetary Instances. The determine within the FT’s article has since been revised to EUR €1.3 billion, which converts to USD $1.39 billion.
Based in 2017 with seed funding from Windfall and led by former Stay Nation exec James Barton, Superstruct has grown its enterprise by strategic acquisitions throughout Europe and Australia.
The corporate now operates 80 large-scale festivals and 200 smaller occasions, together with Wacken Open Air rock pageant, plus Boardmasters and Sónar.
The FT stories that the UK-based firm’s occasions appeal to 7 million folks annually.
KKR mentioned in its announcement on Friday (June 21) that “demand for dwell leisure has grown considerably over the previous decade and is predicted to proceed to broaden, as client spending continues to shift from items in the direction of expertise”.
It added that it plans to “assist Superstruct in its subsequent part of growth as one of many key gamers in a extremely fragmented sector that continues to develop, broaden and professionalize”.
With its funding in Superstruct, KKR mentioned it should “draw from direct expertise” working with unbiased music companies, together with music firm BMG. (BMG and KKR introduced an alliance in March 2021 to amass and handle music copyrights.)
Goldman Sachs is performing as monetary advisor and Kirkland & Ellis as authorized advisor to KKR. Windfall is being suggested by HSBC and LionTree as joint monetary advisors, and White & Case as authorized advisor.
“With a sturdy basis as a top-tier dwell leisure platform, we see vital progress alternatives forward for Superstruct.”
Philipp Freise, KKR
Philipp Freise, Accomplice and Co-Head of European Non-public Fairness and Franziska Kayser, Accomplice at KKR, mentioned: “We’re delighted to companion with Roderik Schlösser, James Barton and the crew at Superstruct who’ve established themselves as a pacesetter in delivering unparalleled dwell music experiences globally.
“With a sturdy basis as a top-tier dwell leisure platform, we see vital progress alternatives forward for Superstruct.
“Drawing on our sturdy partnership strategy and expertise within the digital leisure and ticketing house, reminiscent of BMG, ProSiebenSat1, GetYourGuide, and Trainline, in addition to KKR’s international assets and in depth community, we are going to assist the corporate and its entrepreneurial crew to deliver their compelling portfolio of dwell occasion codecs to a wider viewers and drive additional progress.”
“We’re extremely pleased with the speedy progress and success Superstruct has achieved since its inception.”
Andrew Tisdale and Daniel Zwicky, Windfall Fairness Companions
Andrew Tisdale, Senior Managing Director and Daniel Zwicky, Director at Windfall Fairness Companions, mentioned: “We’re extremely pleased with the speedy progress and success Superstruct has achieved since its inception.
“With Windfall’s backing, Superstruct has change into a really distinctive dwell leisure firm. Specifically, we consider the Firm’s resilience and emergence from the worldwide pandemic as a stronger enterprise is testomony to the entrepreneurial spirit of Roderik Schlösser, James Barton and the spectacular administration crew. We’re assured that with KKR’s assist, Superstruct will proceed to thrive.”
“By way of our growth, we’re a pacesetter within the professionalization of this business, enabling our devoted groups to excel in a collaborative and galvanizing atmosphere and create and ship best-in-class occasions for thousands and thousands of followers.”
Roderik Schlösser and James Barton, Superstruct Leisure
Roderik Schlösser, CEO and James Barton, Chairman of Superstruct Leisure, mentioned: “The founding imaginative and prescient for Superstruct was to create a pure house for profitable entrepreneurs, artistic visionaries, and business-minded professionals in dwell leisure. We wished to create a community of affect setting the requirements for dwell experiences.
“By way of our growth, we’re a pacesetter within the professionalization of this business, enabling our devoted groups to excel in a collaborative and galvanizing atmosphere and create and ship best-in-class occasions for thousands and thousands of followers.
“We’re proud to have secured the backing of KKR, whose experience and community will strengthen our capability to scale and innovate within the vibrant experiential financial system. We wish to thank Andrew Tisdale, Daniel Zwicky and the crew at Windfall for his or her excellent assist. Their perception in Superstruct has been elementary to our success.”
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