Clarity Partners Buys Controlling Stake in Modern Luxury Media
Luxury regional publisher Modern Luxury Media has been purchased by private equity firm Clarity Partners. An early report put the price at $250 million on revenues of $70 million, but the announcement says that while terms were not disclosed, the deal value is "several hundred million dollars."
Clarity, with $1 billion under management, acquired a majority interest from Los Angeles-based and Roy E. Disney-founded Shamrock Capital Partners, which invested $50 million in Modern Luxury Media in 2004. The full management team is expected to remain with the company.
Lehman Brothers joined Clarity in the deal as a co-investor, with debt financing from Credit Suisse and NewStar Financial.
"We are quite pleased with the outcome of this process, which resulted in a valuation for the company that exceeded Shamrock’s original investment by several times, and a partner that will help us continue to grow at a rapid pace both organically and through acquisitions," said Michael Kong, founder and CEO of Modern Luxury, in a statement.
Modern Luxury magazines include CS (Chicago), Angeleno (Los Angeles), Houston, and The Atlantan, among others.