PE Profit Ladder Market Watch Newsletter: Largest franchisee in the world seeks majority exit? No, it's just the 6th recap.
This news that Flynn Group's investors are looking to exit is a great example of the PE Profit Ladder (TM) to accelerate growth. Goldman Sachs Capital Parters invested from 2001-2005, Weston Presidio 2005-2011. GS returned in 2011 to invest again. The Ontario Teachers Pension Plan and Main Post along with management invested in 2014. After ten years it is time to return some funds to pension investors (OTPP and MP may roll some forward).
Direct investing by pension funds and sovereign wealth funds grew 16% per year from 2009 to 2017 according to Boston Consulting Group. OTPP's good outcome here will likely inspire more direct investment in the franchise sector. But given the deal backlog we'll also see more LPs and direct investors pushing for good exits like we're seeing here with Flynn....hold times have extended and there is a bit of a backlog. #bigmoneyinfranchising #qsr #franchising #privateequity