New investments in 2007

Name: Ferretti
Sector: Industrials
Location: Italy
Date of investment: January 2007
Deal size: Not disclosed

Ferretti is a classic marque in the world of luxury motor yachts. It is also a well managed business with a proven track record. Over 40 years, through organic growth and acquisition, Ferretti has developed the broadest portfolio of any luxury motor yacht manufacturer, with nine famous brands that enjoy leading positions in most of their market segments.

When Candover’s Milan office heard of a proposed listing for the company, we suggested an alternative deal, finally emerging as the preferred bidder in a limited auction.

The dynamics of the market were instrumental in our investment decision. The market for luxury yachts is growing by 11% per annum, and as Ferretti’s clients are mainly ultra high-net-worth individuals, they are less cyclical in their spending habits. The company has an exceptionally strong order book and recently invested significantly to meet increased demand. We were confident that this left them well-placed to take advantage of the predicted sales growth over the next few years.

Since the buyout, Candover has helped develop the company by strengthening the central management team with the recruitment of a new CEO and other senior executives. We are also supporting new business lines, including a servicing and repair function which will strengthen its brands and build closer customer links.

Useful link:
www.ferrettigroup.com