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Stonepeak is nearing an agreement to acquire Southern Marinas, potentially valuing the enterprise at beyond $700 million, as a surge in superyacht demand drives a wave of corporate buyouts in the sector.
The American infrastructure investor might finalize a pact in the upcoming weeks with the boatyard operator’s owner, KSL Capital Partners, according to individuals familiar with the situation, although they advised that no definitive determinations had yet occurred.
Southern, projected to command a price ranging from $700 million to $800 million, is not the sole marina enterprise available for sale, as private investment firms seek to capitalize on escalating demand for moorings amidst a proliferation of ultra-wealthy vessel proprietors.
CVC is similarly considering divesting Greece-headquartered D-Marin, the upscale yacht harbor enterprise it procured in 2020, as reported by those knowledgeable about the subject.
Concurrently, private equity collective Centerbridge Partners intends to divest its minority stake in Suntex Marinas in a transaction that the FT earlier indicated might price the entity beyond $4 billion, though it might alternatively choose to transfer the assets to a continuation fund, thereby enabling certain investors to exit.
Capital enterprises are drawn to the marina industry owing to increasing requests for services associated with yachts and the prospect of integrating a dispersed marketplace where numerous enterprises function autonomously and could be family-owned or manager-led.
Stonepeak’s strategy involves leveraging the Southern Marinas purchase as a starting point to acquire additional autonomous marina operations in a conventional private equity consolidation approach, sources indicated.
Last year, Blackstone’s infrastructure division concluded a $5.6 billion agreement to acquire Safe Harbor Marinas, the premier American marina collective and superyacht maintenance provider, marking a pivotal agreement that stimulated additional attention.
Marinas generate income through the sale or lease of docking spots for specific periods, often seasons or multiple years. Such practices can furnish reliable financial inflows for stakeholders.
“We observe a sector that is exceptionally appealing,” stated John Nery, a managing partner at Squircle Capital, the proprietor of the superyacht repair entity MB92.
“Its momentum is sustained by intrinsic expansion, propelled by consumer engagement,” he appended. “Individuals are acquiring larger vessels; individuals are acquiring a greater number of vessels.”
The surge in transaction activity occurs as private investment companies encounter demands from their investors to divest certain holdings and repatriate funds.
Infrastructure financiers have represented a comparatively positive area for engagement, amassing substantial capital to procure holdings perceived as dependable revenue streams amidst economic volatility.
Stonepeak, CVC, and KSL chose not to provide a statement.