There’s a lot of travel going on this time of year so it’s an apt time to look at back at what’s been a busy year in the travel industry for private equity and some of the trends shaping that dynamic.
Next we have a new entry in our Dealmakers to Watch series, as we profile David von Rosen, founder and head of family office Vonrosen.
We finish on a new deal, where Trilantic Europe and CDP Equity have bought control of an Italian agritech company.
Traveling on
The travel industry has seen PE interest soar in 2024, despite anti-tourist protests in some European countries. It has instead been spurred on by a big return to traveling after the covid-19 pandemic, paired with travel tech investments, writes Sophie Rose.
Here’s one of the trends she looked at.
Holidaymakers continue amid anti-tourism protests
In Spain, there has been a wave of protests since April as residents react to the rapid expansion of visitors.
Yet, deals in the travel industry have continued. Notably, Partners Group secured a majority stake in Bluesea, a Spanish all-inclusive hospitality platform, from Portobello Capital in November. Bluesea focuses on the three- to four-star hotel segment and oversees a portfolio of 25 hotels, in the Canary and Balearic islands, and on the mainland coast in Costa del Sol and Costa Brava.
Partners Group managing director Stephen McCall noted that anti-tourism concerns are largely limited to specific markets, with Barcelona as one Spanish example, and Amsterdam further afield in Europe.
“In other tourist locations, what drives discontent with tourism is often a lack of infrastructure and planning by local authorities, or the use of housing stock for short-term rental through platforms,” he said. However, Spain stands out for its “established and sophisticated” infrastructure, designed to manage the flow of large numbers of visitors.
On a larger scale, Spain remains a top choice for travelers, providing a “dependable destination from a risk perspective” at a time when other markets face social and political instability, he added.
Spain welcomed 9.6 million international tourists in September, reflecting a 9.1 percent rise from the same period in 2023, according to Spanish statistical office INE. In the first nine months of 2024, the number peaked at 73.9 million.
Check out the full article for the other two trends: the post-covid-19 boom, and travel tech and AI.
Broad scope
Specialist industry expertise is undoubtedly beneficial for private equity investors, but the ability to find a new business angle is even more important. So says David von Rosen, the German founder and head of family office Vonrosen, who has the experience and track record to support his view as he becomes the latest of PE Hub’s Dealmakers to Watch, speaking to Joe Marsh.
His first and most successful venture was Lottoland, an online lottery gambling platform he set up in 2013 that is now active in Europe, Africa and Asia.
That led to him establishing the family office: “Lottoland became dividend-producing, and I felt I needed to diversify, so I pulled myself out operationally.”
Lottoland does not disclose revenues, but the gambling companies Vonrosen owns make a combined annual revenue of more than $1 billion, he said. And von Rosen has stated his ambition to launch the world’s first ever $1 billion lotto jackpot in Dubai.
Family office Vonrosen has also done deals in edtech, defense, fintech, nutrition, renewable energy, gaming, insurtech and real estate, according to its website.
“The business savvy, the creativity, the flexibility, the hunger, the motivation, the dedication – those are all far more important qualities, I find, than expertise in any specific industry,” von Rosen said.
“When somebody in finance comes in with a new idea and hasn’t had any experience in, say, real estate, that doesn’t mean he’s necessarily disqualified,” he added. “It’s an advantage to come in from the side and start in an industry with a completely new understanding of it.”
For example, a recent Vonrosen project is 25 Degrees, which develops luxury villas in Dubai and sold its first property in July for $17 million, breaking a record for the emirate’s exclusive Palm Jumeirah.
Indeed, von Rosen splits his time between his base in Verbier in Switzerland, and Dubai, where he is focusing his efforts to scope out new investments, given the burgeoning tech investment and start-up scene there.
The original idea for 25 Degrees “was to develop villas ourselves and then sell them,” said von Rosen. “But we now have quite a few requests from external investors who want a piece of the pie in Dubai real estate.”
Enquiries first came from private individuals, then family offices, and now a US private equity fund is interested in investing alongside Vonrosen, he said.
Check out the full interview for more on Vonrosen’s approach to investing.
Editor’s note: PE Hub has launched a new series of profiles called Dealmakers to Watch. We’re featuring private equity professionals as they pivot to new challenges, such as moving to a new firm, launching a new firm, getting promoted to partner, launching an investment strategy, closing a significant deal or some other new endeavor.
If you’d like to be profiled or know someone who would fit the bill, email me at [email protected]
Agri play
Mid-market private equity firm Trilantic Europe and CDP Equity, a subsidiary of Italian development bank Cassa Depositi e Prestiti, have each taken a 41.6 percent stake in Italian agritech company Diagram Group.
Investment platform Nextalia is the seller, having owned Diagram since 2022. BF Agricola is reinvesting but cutting its 20 percent stake to 15 percent.
Diagram provides precision farming services, tech and professional software applications to the agriculture sector. Its clients cover over 2 million hectares in Italy and more than 500,000 in other countries. It is headquartered in Emilia-Romagna and has operating sites across Italy and the UK.
The company has used cross-border M&A to grow since 2017 and plans more acquisitions with the new funds.
