Weekly Roundup of Leading Private Equity Developments
In a significant move, Atlanta-based private equity firm Roark Capital has announced a $1 billion deal to acquire popular fast-food chain Dave's Hot Chicken. This acquisition is part of the growing trend of private equity firms investing in franchise-based businesses.
Roark Capital, which manages $38 billion in assets, already boasts an impressive portfolio of restaurant brands, including Arby's, Culver's, and Subway, which it acquired last year. The acquisition of Dave's Hot Chicken further cements Roark Capital's presence in the fast-growing restaurant franchise sector.
Meanwhile, in a separate development, European stock markets have seen a surge, driving stake sales. One such sale is the Agnelli family's disposal of its €3 billion ($3.14 billion) stake in Ferrari NV. This sale has contributed to European block trades having their strongest start in two decades.
However, the exact nature of the relationship between the Agnelli family's sale and the strength of European block trades is not specified. Similarly, the exact amount of the Agnelli family's sale proceeds that contributed to the strength of European block trades is not disclosed.
The proceeds from the sale will be used by VistaJet, a luxury private jet company, to reduce its $4 billion debt burden. The investment will provide VistaJet with fresh capital as it prepares for a public listing within the next three years. The investment will be in the form of convertible preference shares.
Since January, investors have raised approximately $15.3 billion through stake sales. This trend aligns with private equity's growing interest in franchise-based businesses, known for their predictable royalty revenue and lower operational costs.
The specific details about how the surge in European stock markets and the investments by private equity firms are interconnected are not specified. The IPO venue for VistaJet is yet to be determined.
In Asia, RRJ Capital, one of the largest private equity firms, is set to invest $600 million in VistaJet. This investment will help VistaJet as it navigates its path towards a public listing.
As the landscape of business continues to evolve, these investments and acquisitions highlight the strategic moves being made by private equity firms in various sectors, particularly in franchise-based businesses.
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