Permira funds acquire majority stake in Engel & Völkers
Frankfurt — Permira, the global private equity firm, has announced the acquisition of a majority stake in Engel & Völkers. Engel & Völkers is a leading global platform for real estate consultants in the high-end segment. The Völkers family and part of the management retain just under 40 percent of the shares. Company founder Christian Völkers becomes Chairman of the Advisory Board. The parties have agreed not to disclose the financial terms of the transaction.
Since its foundation in Hamburg in 1977, Engel & Völkers has developed into one of the world’s most respected addresses in the brokerage of high-quality real estate. Today, around 11,500 independent real estate consultants operate on the Engel & Völkers platform in 900 locations in more than 30 countries. You will benefit from first-class sales mandates, digital tools, a comprehensive range of services and one of the world’s most renowned brands in the real estate industry.
The transaction fits Permira Funds’ global strategy of investing in market-leading platforms with transformational potential. Due to its unique brand, Engel & Völkers has access to high-quality and exclusive sales mandates and has thus been able to establish a leading market position. The number of real estate consultants on the platform has been significantly increased by a highly attractive and differentiated range of services and holds considerable further growth potential. The Permira funds will support Engel & Völkers in further digitizing its business model and taking the next steps in its internationalization. In the course of the digital transformation, among other things, the offering for real estate consultants is to be further improved and the technologization of internal processes in marketing, mandate acquisition and the recruitment of qualified real estate consultants is to be driven forward.
Dr. Jörg Rockenhäuser, Managing Partner DACH at Permira, said: “Christian Völkers, Sven Odia and the entire Engel & Völkers team have built one of the most respected brands and platforms in real estate brokerage. Some of the best real estate consultants in the world are active for the company today. We are very much looking forward to supporting the family business in its digital transformation together with Christian Völkers and the management. With our expertise in digitizing successful companies, we want to help further accelerate growth. We see great opportunities to significantly expand the ecosystem around Engel & Völkers in today’s digital world, opening up new areas of growth.”
Christian Völkers (photo left), founder of Engel & Völkers, said: “Our great ambition is to constantly develop the company and drive innovation. Together with Permira, we can strengthen Engel & Völkers even more as a global industry pioneer and implement my vision for the digitalization of the brand. We look forward with enthusiasm to a successful future in which we will still achieve a lot together.”
Sven Odia (photo right), CEO of Engel & Völkers, added: “We are very pleased to have gained such a strong partner in Permira, which has an excellent track record in the tech sector in addition to many years of expertise. By the end of the year, we expect over 1 billion euros in brokerage revenue from more than 11,500 real estate consultants who are writing their own success stories under the Engel & Völkers brand. The basis for this is our outstanding brand name and our leading tech and service platform. The impressive growth trajectory is the ideal time to now set the course for an even stronger future in the long term, develop new strategies and further expand the brand’s potential, especially in the tech-operated business.”
Subject to customary transaction conditions, the acquisition is expected to close in the fourth quarter.
Permira is a global private equity firm that supports successful companies with growth ambitions. Founded in 1985, the company advises funds with a total volume of around 50 billion U.S. dollars (44 billion euros) and invests in companies over the long term through majority and strategic minority shareholdings. Permira advised funds have completed over 250 private equity transactions in four key sectors: Technology, Consumer Goods, Services and Healthcare. The company has an extensive track record in services and has already invested €10.7 billion in 40 companies in proptech, financial services and other business services. Permira employs more than 350 people in 15 locations in Europe, North America and Asia, including the Frankfurt office.
In Germany, the funds advised by Permira are invested in TeamViewer, BestSecret, Neuraxpharm and FlixMobility, among others. www.permira.com.