3i appoints advisor to explore strategic directions for Audley Travel, a leading tailor-made operator.
- Since 2015, 3i has significantly influenced Audley Travel’s growth and evolution, including its expansion into the US market.
- The potential strategic options being assessed may include a sale or continued investment by 3i, though no decisions have been confirmed.
- Increasing attractiveness of the travel sector to private equity is prompting heightened investment interest.
- Speculation arises amid broader merger and acquisition activities within the travel industry this year.
The major investor in Audley Travel, renowned investment firm 3i, has taken a decisive step by engaging an advisor for evaluating its strategic future with Audley Travel. This initiative marks a significant juncture as 3i strategises on the best pathways to foster further growth and enhance the company’s market position.
Holding a pivotal role since 2015, 3i has been instrumental in steering Audley Travel through a phase of substantial growth. A particularly notable success story is the expansion into the United States market, where Audley Travel now achieves a third of its sales. The company’s diversification strategies and the ‘re-platforming of the entire technology stack’ have been cornerstones of its recent achievements.
In a statement, Audley Travel disclosed, “3i has now appointed Baird as an advisor to assist Audley in determining and assessing its strategic options as it plans for the next stage of its growth.” The exact nature of these strategic options remains undisclosed, encompassing possibilities of both a sale and further retention of the asset by 3i.
Interestingly, this development arises amidst a favourable climate for private equity investments within the travel sector, a trend partly attributed to recovery post-Covid. This burgeoning interest is exemplified by recent investments, such as Risk Capital Partners’ acquisition of Simpson Travel, and associated activities around Martin Randall Travel and Newmarket Holidays.
Luke Johnson from Risk Capital Partners highlighted this trend during a conference, noting the surge of interest and speculations, including those around Audley Travel. Such a climate reflects the broader M&A activities within the travel sector, underpinning the substantial confidence investors hold in the industry’s potential.
The decision on whether 3i will continue investing or sell Audley Travel remains pending, amidst an active period of private equity engagements in the travel sector.
