Mulen wrote:
The PEs owning the brand (and the buyers looking to take over the brand), are looking for scalable, sustainable and fast growth - year over year.
i hate what private equity has done to this sport and to the universe in general. but...
orkila capital appears, just by observation, a divergence from the typical PE company. providence equity partners bought IM from the gills family, who bought it from valerie silk. they were the 3rd owners of this chevy. the person who drove that - and was for years behind IM, getting IM to make the changes it needed to make it grow, like owning and producing its own races - was jesse du bey, while he was at PEP. jesse was the bandleader you might not have heard of at IM and he is by no means just a passive investor. it was jesse who organized the purchase from gills, jesse who hired andrew messick, and now it's jesse almost certainly who's again hired the CEO.
after PEP bought IM jesse started his own firm, orkila capital, and was part of the purchase a second time, this time from the chinese. i'm sure it's not unprecedented, but a PE guy purchasing a brand a second time, after (presumably) already earning a boatload from the transaction the first time, says to me that maybe he sees something in this brand beyond the capacity to turn a quick buck. jesse also owns a 9:28 PR at kona.
there were options for the new CEO hire, and that included folks from the "revenue" side of IM. i'm highly critical of that side of IM and will probably have more to write about it. that this new person was chosen as the CEO, and not folks whose sole job is to separate people from their money, signals to me that jesse has something more in mind. if you look at orkila's basket of brands each brand has a deep, committed fan base and you make money by satisfying the fans base, not soaking it into increasing poverty.
so we'll see.
Dan Empfield
aka Slowman