Category Archives: WEEKLY SPIN

Airport control

US private equity giant Carlyle are to take control of Southend airport in the south of England. The deal involves LSE-listed aviation group Esken – owners of Southend – settling a debt of £193.75 million, after Carlyle claimed Esken had broken the terms of a £125 million loan. The turbulence has now subsided, with Southend set to operate under 82.5% control of the Carlyle Global Infrastructure Fund with Esken retaining a 17.5% stake. It certainly puts a new spin on ‘airport control’. Carlyle will be hoping that the sky’s the limit under its new ownership.

Inspired by the Guardian

Trophy Asset

South Africa Rugby is hoping to land a conversion of a different kind, as it prepares to sell part of its commercial rights – valued at $375 million – in a private equity deal. The deal in question will involve selling a 20% stake to Ackerley Sports Group, a Seattle-based private equity firm, who beat CVC Capital Partners to the try line in December. The investment is designed to help South African rugby double its sponsorship revenue by the next World Cup in 2027. The rough and tumble world of professional rugby has once again proved alluring to the polished boardrooms of private equity. Will the deal prove to be a winning strategy? And become a veritable Boks of Delights? We shall see. In the meantime, SA Rugby will be scrumming down and setting up a company to hold the commercial rights. With Spring just around the corner, the Boks will be hoping to celebrate once again…this time, off the field.

Inspired by Bloomberg

To be continued…

GP-led or continuation funds are set to be the next area of focus for Sequoia Heritage, as it looks to invest in complex opportunities. This will be the private investment firm’s second foray into PE secondaries, having established Pinegrove Capital Partners last August with Brookfield to acquire stakes in VC funds. This new investment sees Sequoia Heritage continue its journey by pledging upwards of $200 million to Cody Kittle’s RenWave Kore, whose inaugural fund will invest in continuation fund deals; specifically complex situations where the assets are difficult to value, and which GPs feel have further value to unlock. This is just the latest of many more chapters, as the GP secondaries marketplace builds its heritage.

Inspired by the Wall Street Journal

Whiskey assets raise spirits

Cordillera Investment Partners have raised $62 million for their inaugural fund targeting acquisitions of a different kind: aging whiskey barrels. The Whiskey Opportunities Fund is getting into the spirit of things as it taps in to the growing demand for premium whiskey assets, referred to as the “Bourbon Boom”. It’s certainly a more attractive liquidity proposition for investors to consider. Moreover, the uncorrelated nature of esoteric assets to broader market forces offer a useful diversification option, with the “super premium” category of whiskey enjoying a 129% volume growth in the last five years. How do you like yours…Neat or on the rocks? Slàinte!

Inspired by Business Wire

Bird’s eye view

The wisest investors know where to spot the best opportunities irrespective of charging market conditions. And it that sense, Blue Owl Capital is no exception. Despite expectations that the US will see interest rate cuts this year, the firm’s co-chief executive, Marc Lipschultz, still expects private credit to enjoy strong demand. Given the floating rate nature of private lending, any rate cuts will likely see adjustments to expected returns, but the spreads on offer will still catch the eye of investors. And with over $200 billion raised in private credit funds last year, there is plenty of capital for managers to use, and swoop in on PE-backed companies seeking out alternative financing options. Rate cuts are inevitable. But private credit is still capable of soaring higher.

Inspired by the Wall Street Journal