Investment giant KKR has acquired European festival operator Superstruct Entertainment from private equity firm Providence Equity Partners.
As part of the deal, Providence has the option to invest 250 million euros (approximately $267 million) Enter Superstruct.
KKR is investing in Superstruct through its European Fund VI, US$8 billion A fund that invests in the growth of “leading companies”.
Update: An earlier version of this story reported the deal was worth it GBP £1.3 billion ($1.64 billion at current exchange rates), citing Financial Times. The numbers in the picture are Financial Times The article has been modified to 1.3 billion eurosconverted to $1.39 billion.
The company was founded in 2017 with seed funding from Providence and is led by live country implement James ButtonSuperstruct has grown its business through strategic acquisitions in Europe and Australia.
The company currently operates 80 Large-scale festivals and events 200 Smaller activities include Vulcan Open Air Rock festival, with Boardmasters and Sónar.
this Financial Times Reports say the British company’s events attract 7 million people a year.
“Demand for live entertainment has grown significantly over the past decade and is expected to continue to expand as consumer spending continues to shift from commodities to experiences,” KKR said in an announcement on Friday (June 21).
It added that it plans to “support the next phase of Superstruct’s growth, becoming one of the key players in a highly fragmented industry and continuing to grow, expand and specialize”.
KKR said that through its investment in Superstruct, it will “draw on direct experience working with independent music companies such as music company BMG”. (BMG and KKR announced an alliance in March 2021 to acquire and manage music rights.)
Goldman Sachs served as financial advisor to KKR, and Kirkland & Ellis served as legal advisor. Providence was advised by HSBC and LionTree as joint financial advisors and White & Case as legal advisor.
“With its solid foundation as a premier live entertainment platform, we see significant growth opportunities for Superstruct going forward.”
Philippe Freis, KKR
Philipp Freise, partner and co-head of European Private Equity, and Franziska Kayser, partner at KKR, said: “We are delighted to be working with Roderik Schlösser, James Barton and the Superstruct team, who have become leaders in delivering unparalleled live music experiences globally.
“With its solid foundation as a premier live entertainment platform, we see tremendous growth opportunities for Superstruct in the future.
“With our strong collaborative approach and experience in digital entertainment and ticketing, such as BMG, ProSiebenSat1, GetYourGuide and Trainline, as well as KKR’s global resources and extensive network, we will support the company and its entrepreneurial team to expand their audience and drive further growth.
“We are extremely proud of the rapid growth and success Superstruct has achieved since its inception.”
Andrew Tisdale and Daniel Zwicky, Providence Equity Partners
Providence Equity Partners Senior Managing Director Andrew Tisdale and Director Daniel Zwicky said: “We are extremely proud of Superstruct’s rapid growth and success since its inception.
“With the support of Providence, Superstruct has become a truly exceptional live entertainment company. In particular, we believe the company’s resilience and emerging from the global pandemic a stronger business is a testament to Roderik Schlösser, James Barton and the impressive management team. We believe Superstruct will continue to thrive with the support of KKR.
“Through our growth, we have become a leader in specialization in the industry, enabling our team of professionals to excel in a collaborative and inspiring environment and create and deliver best-in-class events to millions of fans.”
Roderik Schlösser and James Barton, Superstruct Entertainment
Superstruct Entertainment CEO Roderik Schlösser and Chairman James Barton said: “Superstruct’s founding vision was to create a natural home for successful entrepreneurs, creative visionaries and business-minded professionals in the live entertainment space. We want to create an impact Network, setting the standard for live experiences.
“Through our growth, we have become the industry leader in specialization, enabling our team of professionals to excel in a collaborative and inspiring environment and create and deliver best-in-class events to millions of fans.
“We are proud to have the support of KKR, whose expertise and network will enhance our ability to scale and innovate in the dynamic experience economy. We would like to thank Andrew Tisdale, Daniel Zwicky and the Providence team for their outstanding support. They Belief in Superstruct is the foundation of our success.
global music business