Private Equity Giant KKR invests in Hertha BSC

Bundesliga club Hertha BSC announced that they have secured a €61.2m equity investment from private equity firm Kohlberg Kravis Roberts in exchange for a 9.7% ownership stake. Ingo Schiller, Hertha’s CFO, cited the benefits of “deleveraging, additional equity, less cost pressure, and a reliable foundation for long-term planning,” for the accepting the investment.

Additional details of the deal were not disclosed but both parties were keen to stress the long-term nature of the deal, with Managing Director Michael Preetz emphasizing full commitment to “our strategy of focusing on our superior youth development, and of integrating young, talented players.” The head of KKR Europe elaborated on the investment thesis stressing the club’s “large and loyal fan base, its unique development programme for young talents and the fact that it is the German capital’s leading football club”.

The financing will help Hertha BSC supporters breathe a bit easier as the club looks to compete more effectively and escape its recent relegation woes. It could not have come sooner as der Bayern’s expanding economic dominance continues to cast a long shadow over the prospects of competitors for the Bundesliga throne.

Source: KKR Investor Relations

 

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