Alterra gets a $3 billion infusion

saratogahalfday · Feb 1, 2024

https://unofficialnetworks.com/2024/01/31/3-billion-alterra-investment/amp/

DomB · Feb 1, 2024

saratogahalfday said:
https://unofficialnetworks.com/2024/01/31/3-billion-alterra-investment/amp/

May not be a popular opinion, but I actually think this is positive - if Alterra was/is private equity owned, a vehicle like this means there will be more money (and a plan) to put into capital improvement and employee support. It is likely that the transaction included marketing material and backup including that kind of investment.

I am not getting into private corps / venture / PE in skiing - I am decidedly not a fan of it, just saying that if an asset is already PE, this means there is probably cash for investment actually into the mountain. Who knows what the plan is to generate more profit.

MarzNC · Feb 1, 2024

Alterra has been moving beyond owning ski resorts for a while. Added a second heli operations last fall. Recently cut a deal with Ship Skis.

December 2023

Alterra Mountain Company Elevates Guest Experience Through New Partnership with Ship Skis

Ship Skis and Alterra Mountain Company have entered into a new partnership for the 23/24 season. Ship Skis is now available as an exclusive benefit of the Alterra Mountain Company’s North American destinations.

www.alterramtn.co

Along with Ikon, Alterra lists Aspenware, Ski Butlers, Westin Mammoth, and Alpine Aerotech on their website as "other holdings." Anyone know what Alpine Aerotech does for the ski industry?

MarzNC · Feb 1, 2024

The money is coming from KSL Capital Partners, so just a continuation of an existing partnership.

The unexpected death Jim Crown, head of the Crown family businesses and Aspen Ski Co. must have shifted the situation for Alterra in some way. Crown died at age 70 in a car accident at a race track in June 2023.

January 29, 2024

KSL Capital Partners Closes Over $3 Billion Continuation Vehicle for Alterra Mountain Company

/PRNewswire/ -- KSL Capital Partners, LLC ("KSL"), a leading investor in travel and leisure businesses, today announced the final closing of a single-asset...

www.prnewswire.com

MarzNC · Feb 1, 2024

The expansion of Deer Valley is a huge project that will take years to complete. Presumably needs lots of capital.

The existing ski terrain at DV covers about 2000 acres. DV has limited Ikon access to 5/7 days from the start. The former owners of DV bought Solitude not that long before selling to Alterra. Solitude was sold to Alterra a bit later. A lot of major upgrades have happened at Solitude in recent years.

Worth keeping in mind that the Epic Pass is only good at Park City when flying to SLC. Ikon/MCP is good at DV, Solitude (unlimited), Brighton, Snowbird, Alta, and Snowbasin. A lot of ski clubs go to SLC annually. The SLC airport expansion will be done in a year or so. The primary connecting tunnel between Terminals A and B is supposed to open before the end of 2024.

September 2023

Deer Valley Resort Will Double In Size

Deer Valley Resort, Utah’s glamorous luxury ski resort high in the Wasatch Mountains and one of America’s top resorts, has announced that it will double in size.

www.forbes.com

" . . .
Deer Valley will add an astonishing 3,700 acres of terrain and remain a ski-only destination. The expansion will include a new village, new resort access, and more lodging, dining, and retail. Deer Valley Resort is making it happen by taking over the fledgling Mayflower ski area near Jordanelle Reservoir.
. . ."

DomB · Feb 1, 2024

MarzNC said:
The money is coming from KSL Capital Partners, so just a continuation of an existing partnership.

The unexpected death Jim Crown, head of the Crown family businesses and Aspen Ski Co. must have shifted the situation for Alterra in some way. Crown died at age 70 in a car accident at a race track in June 2023.

January 29, 2024

KSL Capital Partners Closes Over $3 Billion Continuation Vehicle for Alterra Mountain Company

/PRNewswire/ -- KSL Capital Partners, LLC ("KSL"), a leading investor in travel and leisure businesses, today announced the final closing of a single-asset...

www.prnewswire.com

Yes, a continuation vehicle often doesn't involve an actual change of control but does give new capital/money.

tirolski · Feb 1, 2024

DomB said:
Yes, a continuation vehicle often doesn't involve an actual change of control but does give new capital/money.

Easy come.

MarzNC said:
The expansion of Deer Valley is a huge project that will take years to complete. Presumably needs lots of capital.

Easy go.

Where it stops nobody knows. Place yer bets.

Benny Profane · Feb 1, 2024

Gee, it would be great if some of it went to subsidized employee housing, better parking, and cheap transit to hills. The world doesn't need another six pack. But, that would be socialism. Something tells me these money people aren't socialists.

MarzNC · Feb 1, 2024

Benny Profane said:
Gee, it would be great if some of it went to subsidized employee housing, better parking, and cheap transit to hills. The world doesn't need another six pack. But, that would be socialism. Something tells me these money people aren't socialists.

Who says such investments aren't happening? At least at some of the Alterra resorts. The business model and management approach for Alterra seems quite different than Vail Resorts.

The Crown family owns Aspen/Snowmass as an independent resort. They have put a lot of effort into being good stewards and working with the local community. Not always smooth but they try hard.

Rusty Gregory retired from the top job at Alterra but his interview with Stuart is still worth a listen. Also found a written interview with Jason Blevins of the Colorado Sun from about the same time.

June 2022