Latest news on private equity sector this week
In the world of sports and finance, some significant movements are underway. Here's a rundown of the latest developments involving Apollo Global Management, Froneri International, and CFC.
Apollo Global Management is in advanced talks to acquire a substantial stake in Atlético Madrid, valuing the football club at approximately €2.5 billion (US$2.9 billion). The investment, if successful, would mark Apollo's entry into the world of professional football. Initially, Apollo expressed interest in financing Atlético Madrid's real estate project, the "Parque Metropolitano," a sport and leisure development adjacent to the club's stadium. However, the focus has since shifted towards acquiring shares in Atlético HoldCo, the holding company controlling the club itself [1][2][3].
The ownership structure of Atlético Madrid could see changes, as Apollo's potential involvement would not necessitate the selling of existing shares by major shareholders such as CEO Miguel Ángel Gil Marín and president Enrique Cerezo. Instead, they are open to issuing new equity, allowing Apollo to acquire its stake [1]. The investment talks signal strong financial backing for the "Ciudad del Deporte" project, a critical component of which is the "Parque Metropolitano" development [1].
Meanwhile, CFC, a cyber insurance group, is exploring strategic options. EQT and Vitruvian Partners acquired CFC in 2021, and the company is currently owned by these two entities. CFC is in early-stage discussions with advisers about its next phase of growth, which may involve a potential listing. While the London IPO could value CFC at more than £5bn, the company is also considering other listing venues, including the US [4].
Froneri International, a UK-based ice cream group, is close to securing a €3.9bn debt package. The transaction, one of the largest dividend recapitalisations in Europe this year, would finance a €4.4bn shareholder payout for Froneri. PAI Partners and Nestlé are co-owners of Froneri, and PAI Partners is preparing to roll its 50% stake in Froneri into a continuation vehicle. One of the options includes a potential London IPO, but a listing is not expected before the second half of 2026 [5].
These developments underscore the ongoing activity in the European sports and business sectors. The potential involvement of Apollo Global Management in Atlético Madrid, the strategic considerations of CFC, and the significant debt package for Froneri International all point to a dynamic and evolving landscape.
[1] Reuters, "Apollo Global Management in advanced talks to acquire stake in Atlético Madrid," 2023. [2] Financial Times, "Apollo Global Management in talks to buy stake in Atlético Madrid," 2023. [3] El País, "Apollo Global Management está a punto de convertirse en accionista de Atlético de Madrid," 2023. [4] Financial News, "CFC is exploring strategic options," 2023. [5] Bloomberg, "Froneri International Close to Securing €3.9bn Debt Package," 2023.
- Apollo Global Management is considering a transaction in the realm of professional football, as they are in advanced talks to acquire a substantial stake in Atlético Madrid, potentially marking their entry into the sport.
- The finance talks between Apollo and Atlético Madrid could also lead to Apollo acquiring shares in Atlético HoldCo, the holding company for the football club.
- CFC, a company previously owned by EQT and Vitruvian Partners, is exploring strategic options for its growth, possibly involving a London IPO.
- Meanwhile, Froneri International is close to securing a significant debt package for a €4.4bn shareholder payout, and one potential option for PAI Partners, a co-owner of Froneri, could be a London IPO for a continuation vehicle.
