Funding big KKR has acquired European competition operator Superstruct Leisure from non-public fairness agency Windfall Fairness Companions.
As a part of the transaction, Windfall has an choice to speculate €250 million (approx $267m) into Superstruct.
KKR is making the funding in Superstruct by way of its European Fund VI, an $8 billion fund that invests within the development of “main companies”.
UPDATE: An earlier model of this story reported that the deal was price GBP £1.3 billion ($1.64bn at present alternate charges), citing a report from the Monetary Occasions. 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 Dwell Nation exec James Barton, Superstruct has grown its enterprise by way of strategic acquisitions throughout Europe and Australia.
The corporate now operates 80 large-scale festivals and 200 smaller occasions, together with Wacken Open Air rock competition, plus Boardmasters and Sónar.
The FT experiences that the UK-based firm’s occasions appeal to 7 million folks every year.
KKR mentioned in its announcement on Friday (June 21) that “demand for stay leisure has grown considerably over the previous decade and is predicted to proceed to increase, as client spending continues to shift from items in the direction of expertise”.
It added that it plans to “assist Superstruct in its subsequent section of growth as one of many key gamers in a extremely fragmented sector that continues to develop, increase 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 appearing 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 strong basis as a top-tier stay leisure platform, we see important development alternatives forward for Superstruct.”
Philipp Freise, KKR
Philipp Freise, Accomplice and Co-Head of European Personal Fairness and Franziska Kayser, Accomplice at KKR, mentioned: “We’re delighted to associate with Roderik Schlösser, James Barton and the workforce at Superstruct who’ve established themselves as a frontrunner in delivering unparalleled stay music experiences globally.
“With a strong basis as a top-tier stay leisure platform, we see important development alternatives forward for Superstruct.
“Drawing on our robust partnership method and expertise within the digital leisure and ticketing area, equivalent to 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 workforce to deliver their compelling portfolio of stay occasion codecs to a wider viewers and drive additional development.”
“We’re extremely pleased with the speedy development 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 development and success Superstruct has achieved since its inception.
“With Windfall’s backing, Superstruct has turn out to be a very distinctive stay 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 workforce. We’re assured that with KKR’s assist, Superstruct will proceed to thrive.”
“By means of our growth, we’re a frontrunner within the professionalization of this business, enabling our devoted groups to excel in a collaborative and provoking setting 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 dwelling for profitable entrepreneurs, artistic visionaries, and business-minded professionals in stay leisure. We needed to create a community of affect setting the requirements for stay experiences.
“By means of our growth, we’re a frontrunner within the professionalization of this business, enabling our devoted groups to excel in a collaborative and provoking setting 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 means to scale and innovate within the vibrant experiential financial system. We want to thank Andrew Tisdale, Daniel Zwicky and the workforce at Windfall for his or her excellent assist. Their perception in Superstruct has been basic to our success.”
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