RiverRock European Opportunities Fund II has acquired a majority stake in British yacht manufacturer Fairline Yachts.
Following a partnership over the past 11 months that Fairline deemed successful, RiverRock has committed to a significant capital investment program that secures the boatbuilder’s financial future after the turbulence created by the global coronavirus pandemic.
“By taking a majority stake in the business, RiverRock is demonstrating its continued support and confidence in Fairline,” said Fairline Yachts COO Peter McNulty in a statement. “The investment secures our financial future and ensures we can continue the roll-out of our long-term strategic plan for the brand.”
The previous investors, Alexander Volov and Igor Glyanenko, acquired Fairline in 2016, and have maintained an investment in the company, but have shifted focus in recent months on their other core business that have been substantially impacted by both the covid-19 pandemic and the oil price shock of recent months, according to the company.
Prior to that acquisition in 2015, Fairline went into administration, the British equivalent of U.S. bankruptcy, just months after it was sold by Jon Moulton’s private equity house Better Capital to fellow buyout house Wessex Bristol, according to The Guardian.
“As announced previously, the company has made some tough decisions to right-size the business as a result of the current extremely challenging market conditions,” said McNulty. “This has better positioned the company and aligns it more closely with our strategic plans both in terms of product and regional growth. The new investment from RiverRock provides us with the capital and execution ability we needed to fulfill these long-term growth plans.”
“The coronavirus pandemic has put additional pressure on all businesses and RiverRock’s investment means we can continue our exciting and highly innovative new product development program, which is critical for the sustained growth of the business and to meet our discerning buyers’ requirements,” added McNulty.
RiverRock is confident with the leadership at Fairline, as well as the strength of the brand, said RiverRock senior portfolio manager Jason Carley.
“We are pleased to take the next step on our partnership journey with Fairline Yachts. We firmly believe in the team at the helm and the strength of the brand. We appreciate Alex and Igor’s significant investment over the last four years and our additional investment will now support Fairline to grow and will enable the company to keep doing what it does best — building exquisitely designed, hand crafted boats made in Great Britain.”