Wednesday, December 22, 2021
THCP ANNOUNCES PLATFORM INVESTMENT IN PARTNERSHIP WITH FORMER ARTS CLUB CHAIRMANInvestment Activity
Three Hills Capital Partners (“THCP”) is pleased to announce that it has signed an agreement with Gary Landesberg, former Chairman of the renowned Arts Club in London, and his business partners to invest in their holding to finance the launch of a newly-branded, high-end private members club group which will be rolled out globally. THCP has committed up to £30 million in a preferred capital investment, which will be used primarily as growth capital to fund club openings. The transaction represents the latest investment in THCP’s third fund, and the firm’s first platform investment, an investment thesis focused on partnerships with serial entrepreneurs and operators to finance their growth plans, in line with the core DNA of THCP.
Gary is a successful, operationally-focussed entrepreneur with significant experience in the leisure and real estate sectors as well as an invaluable network across site development and club operations. Following ten years as Executive Chairman of the renowned Arts Club, during which he led the popular repositioning of the London-based club as well as the opening of the Arts Club Dubai, Gary has decided to launch a new, refined concept focused on geographic expansion in Europe and the US. A long-standing relationship from within the THCP network, Gary found in THCP the institutional partner to provide the financial support, value creation strategy and operational understanding to help deliver on his vision.
The transaction entails the development and operations of a newly-branded, high-end private members club group, with a first site opening expected in late 2023. Gary will serve as Executive Chairperson and global COO of the group, with Mauro Moretti, Founder and Investment Committee Chair of THCP, joining the board. The name and proposition of the new group are yet to be announced.
THCP has identified the opportunity to partner with Gary to develop this new club concept as an attractive proposition given the sector’s recurring annual membership fees at a time when changing working patterns are enhancing the role of members clubs as meeting places.
Speaking of the transaction, Mauro Moretti said:
“We established THCP to provide flexible capital to successful entrepreneurs and Gary represents the quintessential expression of how to uniquely run private member clubs. His passion, dedication and drive have been witnessed by us in the last ten years, a period over which we have built a unique relationship with him, and it is thanks to this relationship that we have been able to deliver another proprietary transaction to our investors. Private member clubs are an exciting investment area, benefitting from an attractive business model where most of the profitability is driven by recurring revenues coming from membership fees. We are extremely excited to partner with Gary to realise his vision in the coming years, and we look forward to working with him and his team.”
Gary Landesberg said:
“Member clubs have demonstrated their resilience during the pandemic, and I am confident that with the right strategic plan and long-term partners, we can deliver a new, incredible brand and experience for our members. I have known Mauro and the THCP team for a long time and I couldn’t be happier to have an opportunity to work with them. THCP’s understanding of the “science behind the art” of hospitality will be a source of great support in this journey.”