Investment giant CVC has invested in Superstruct Entertainment, joining KKR‘s ownership of the European festival organizer.
The investment, announced Monday (October 28), follows KKR‘s acquisition of Superstruct Entertainment in June in a deal that was reportedly worth EUR €1.3 billion ($1.41 billion). The transaction between KKR and Superstruct has now closed, said CVC.
Superstruct Entertainment, established in 2017 with initial funding from Providence Equity Partners, operates 80 music festivals and 200 smaller events across 10 countries in Europe and Australia. The company’s events attract 7 million attendees annually, the Financial Times reported earlier.
James Barton, a former Live Nation president, leads Superstruct. The company’s festival portfolio includes Wacken Open Air, Defqon.1, Parookaville, Tinderbox, Zwarte Cross, and Sónar. In 2021, Superstruct acquired electronic music company ID&T from Axar Capital in a deal that was reported to be worth between $150 million and $200 million.
KKR’s investment in Superstruct comes through its European Fund VI, which has $8 billion in capital. Providence Equity Partners, Superstruct’s previous owner, maintains an option to reinvest €250 million ($270 million) into the business, MBW reported in June.
The specific terms of CVC’s investment, including the size of its stake, were not disclosed in the announcement.
“With CVC coming on board, Superstruct gains another strong strategic partner to support the talented team who have led the company’s growth and success.”
CVC and KKR
“With CVC coming on board, Superstruct gains another strong strategic partner to support the talented team who have led the company’s growth and success. The business will benefit from the combined global expertise, resources and capital of two leading investors with significant experience across the media and entertainment sector,” CVC and KKR said in statements issued on Monday (October 28).
The addition of CVC as a strategic investor brings another heavyweight partner to Superstruct. Both KKR and CVC have previous investments in the media and entertainment sector. KKR’s portfolio includes investments in BMG, ProSiebenSat1, GetYourGuide, Mediawan and Trainline, while CVC’s entertainment sector investments include Stage Entertainment, Formula One, Women’s Tennis and LaLiga, among others.
Superstruct is now poised “to accelerate its mission of creating best-in-class live experiences, working closely with entrepreneurs, creative visionaries and business-minded professionals,” CVC and KKR said.
“KKR and CVC will ensure that Superstruct remains at the forefront of the industry, driving innovation and setting the standards for live entertainment.”
The investments from KKR and CVC follow reports in early 2024 about Superstruct attracting bids from major private equity firms including Blackstone, CVC, KKR and EQT, as well as Condé Nast owner Advance Publications, known for publications like Vogue and The New Yorker.
The rebound of live music festivals, fueled by the easing of COVID-19 restrictions, could be a factor driving the influx of investments in the live music industry. In April, Superstruct’s former backer, Providence Equity Partners, was reported to be considering another minority stake sale in ATG Entertainment, which operates stage venues in the West End and on Broadway.
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