Global investment firm KKR has acquired Superstruct Entertainment from Providence Equity Partners.
Terms of the transaction were not disclosed, although the FT reported that Superstruct was valued at €1.3 billion.
Superstruct is a leading European live entertainment group, owning and operating over 80 music festivals across 10 countries in Europe and Australia.
Since its establishment in 2017 by Providence, Superstruct has grown organically and through acquisitions and now has a diversified portfolio across music genres and geographies. The portfolio includes popular UK and European festivals such as Boardmasters (pictured) Wacken Open Air, Defqon 1, Parookaville, Sziget, Tinderbox and Sónar.
“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 goods towards experience,” said a statement. “KKR will support Superstruct in its next phase of development as one of the key players in a highly fragmented sector that continues to grow, expand and professionalise, whilst preserving the creative and cultural DNA of the company.”
As part of the transaction, Providence has an option to invest €250 million into Superstruct.
Philipp Freise, partner and co-head of European private equity and Franziska Kayser, partner at KKR, said: “We are delighted to partner with Roderik Schlösser, James Barton and the team at Superstruct who have established themselves as a leader in delivering unparalleled live music experiences globally. With a robust foundation as a top-tier live entertainment platform, we see significant growth opportunities ahead for Superstruct.
“Drawing on our strong partnership approach and experience in the digital entertainment and ticketing space, 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 bring their compelling portfolio of live event formats to a wider audience and drive further growth.”
Andrew Tisdale, senior managing director, and Daniel Zwicky, director at Providence Equity Partners, said: “We are incredibly proud of the rapid growth and success Superstruct has achieved since its inception. With Providence’s backing, Superstruct has become a truly exceptional live entertainment company. In particular, we believe the company’s resilience and emergence from the global pandemic as a stronger business is testament to the entrepreneurial spirit of Roderik Schlösser, James Barton and the impressive management team. We are confident that with KKR’s support, Superstruct will continue to thrive.”
Roderik Schlösser, CEO, and James Barton, chairman of Superstruct Entertainment, said: “The founding vision for Superstruct was to create a natural home for successful entrepreneurs, creative visionaries, and business-minded professionals in live entertainment. We wanted to create a network of influence setting the standards for live experiences. Through our development, we are a leader in the professionalisation of this industry, enabling our dedicated teams to excel in a collaborative and inspiring environment and create and deliver best-in-class events for millions of fans.
“We are proud to have secured the backing of KKR, whose expertise and network will strengthen our ability to scale and innovate in the vibrant experiential economy. We would like to thank Andrew Tisdale, Daniel Zwicky and the team at Providence for their outstanding support. Their belief in Superstruct has been fundamental to our success.”
KKR is making the investment in Superstruct through its European Fund VI, an $8 billion fund that invests in the growth of leading businesses by providing access to KKR’s extensive network and resources. Recent investments from European Fund VI include FGS Global, OHB and Nexeye.
Goldman Sachs is acting as financial advisor and Kirkland & Ellis as legal advisor to KKR. Providence is being advised by HSBC and LionTree as joint financial advisors, and White & Case as legal advisor.
PHOTO: Boardmasters by Darina Stoda
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