Italian private equity firm Investindustrial rasied a new fund to buyback the residual portfolio of its 2008 vintage fund (Investindustrial IV) which then had raised one billion euros from investors, The Wall Street Journal wrote yesterday, adding that Investindustrial’s managing partner aims at keeping on supporting its plans for its Spanish theme parks developer PortaAventura.
The Spanish group actually is realizing Ferrari Land, the first Ferrari theme park in Europe and the second in the world after the one in Abu Dhabi. Actually with a 10 years’ life period, thet Investindustrial’s fund like all private equity fundswould be forced to divest its portfolio by the fund’s expiration date. As perspectives are still quite interesting for PortAventura, with an Irr for the fund over 25%, Bonomi chose to ask its investors if they preferred to cash in the value of their stakes in the fund or to reinvest a new fund owning the same portfolio in order to support a further development of the portfolio companies. Investors answered they would reinvest for a 55% of the fund value.
More in detail, Investindsutrial fund IV still owns a 51.1% stake in PortaVentura (with Kkr owning a 49.9%) which is valued about 500 million euros, and stakes in Italian companies Snai and Perfume Holding and in the Spanish ambulance service Emeru, for a total value of about 700 million euros, as far as BeBeez was told. The new fund also raised 150 million euros in new committements by the same old investors, with Alpinvest among them.
Investindustrial first acquired a 50% stake of PortAventura in December 2009 subscribing a 95 million euros capital increase. The private equity fund bought the remaining 50% from Spanish La Caixa in Autumn 2012 paying 105 million euros as PortAventura was valued 439 million euros. In October 2013 Investindustrial announced its committement to invest 150-200 million euros in 12 years’ time to build six hotels in Bcn World, close to Barcelona, bear-by PortAventura. Finally in 2014, the Ferrari Land was announced, implying a 100 million euros investment (see here MF Milano Finanza). Ferrari Land is opening in 23 days from now.