German broadcast group ProSiebenSat.1’s investment unit ProSiebenSat.1 Ventures has sold what it says is ‘a large part’ of its media-for-equity portfolio of assets to private equity outfit Lexington Partners for a double-digit million euro sum.
Up to 16 minority participations of SevenVentures and other Group companies will be transferred to the new Crosslantic Capital fund. Lexington Partners is acquiring the majority of this fund, while SevenVentures will remain involved as a strategic media partner with a minority stake of approximately 24.5 %.
ProSiebenSat.1 said it had doubled the value of its media-for-equity and cash investments and generated an internal rate of return of 30%.
Crosslantic Capital is managed by Sascha van Holt, who was previously responsible for SevenVentures’ investments as managing director. The group said that, besides the development of the current portfolio companies, Crosslantic Capital will also invest in further promising digital companies.
SevenVentures was founded by ProSiebenSat.1 in 2009 and operates a flexible investment model consisting of minority investments and media co-operations, where companies receive financial support, TV advertising time and other services in return for equity or revenue shares.
Sabine Eckhardt, chief commercial officer and executive board member of ProSiebenSat.1 Media said: “With the value of our media and cash investments doubled, we have significantly increased the market value of the SevenVentures investments through TV advertising on our stations, which has been to the advantage of both parties. This further underscores the success and the sustainability of our media-for-equity model.”
Pål Ristvedt, partner at Lexington Partners said: “We are delighted to be offering an attractive solution to ProSiebenSat.1 while investing in a portfolio of high-quality media-driven assets. We look forward to further increasing the value together with Sascha van Holt, and our strategic partners SevenVentures and ProSiebenSat.1.”
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