BlueGem sells Liberty to Glendower for £300m

The sale represents a 12x return for the vendor and brings to an end a nine-year holding period. The GP's partners all reinvested alongside Glendower, while BlueGem managing partner Marco Capello will continue in the role of non-executive chairperson at Liberty.

Glendower used a Cayman Islands-registered holding company for the transaction and drew capital from its secondaries vehicle, Glendower Secondaries Opportunities Fund IV, according to Companies House and SEC filings. 

The transaction is understood to be structured as a secondary recapitalisation, which differs from a single asset restructuring because BlueGem is no longer invested through its fund. There was also no option for BlueGem LPs to roll over their investment into the new holding company.

However, all the partners of BlueGem have re-invested on an individual basis and will continue to manage the investment. 

During BlueGem's tenure, the business overhauled its senior management team and launched a number of own-brand product lines and collaborations with established clothing and accessories brands. It also sold and rented back its flagship store in London's west end and invested heavily in its online platform.

At the time of its acquisition by BlueGem, Liberty was trading at close to zero in EBITDA, according to a statement issued by the vendor. It has since increased this figure to £25m, while revenues have risen from £63m to £166m. Online revenues increased from £1m to £14m during the period.

Previous funding
BlueGem acquired Liberty in a deal valued at £32m in 2010. It was originally invested via 2007 fund BlueGem I, though the latest divestment marks an exit for BlueGem II, which closed on €370m in 2013, according to the statement.

Company
Founded in 1875 and based in London, Liberty is a retailer of luxury clothing, accessories, cosmetics, homeware and fabrics.

People
BlueGem Capital Partners – Marco Capello (managing partner); Emilio Di Spiezio Sardo, Marco Anatriello (partners).
Liberty London – Adil Khan (CEO).

Advisers
Vendor – UBS (corporate finance).

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• Topics
• Exits
• Secondaries
• UK / Ireland
• Consumer
• United Kingdom
• BlueGem Capital Partners
• Secondary buyout
• UBS