Sixteen months ago, private equity firm Oakley Capital made a contrarian move by acquiring online matchmaking service Parship from Holtzbrinck Digital. A few weeks later it also acquired Elite Partner, to create Parship Elite Group.
Now, ProsiebenSat1 Media acquired just over 50% in Parship Elite Group, for €100M. Parship was valued at €300M and had €100M in debt which means €200M in equity value. Prosieben also will replace the €100M loans with preferred capital.
Oakley Capital will receive about €129M in cash, realising a cash return of 2.3x in 16 months. Including the remaining 50% stake, the implied total return is 3.6x, which is equal to a 150% annual return on investment.
Last year, Oakley also sold price comparison website Verivox to ProsiebenSat1.
Pro tip: dealroom tracks over 230 companies in the online dating and matchmaking space, from early stage disruptors to late stage incumbents.