I would bet the farm that KSL will not take this public "in a year or two."
True, every PE firm, and every PE investment eventually has a liquidity event. Much more common that an IPO is flipping the position to another PE firm. The upside of an IPO has to be very compelling. In this industry, we have MTN who has had success.
I've been told that a liquidity event may be 10 years out. Or more. This is not a normal PE deal. I have owned two businesss with PE partners. Like clockwork, we had an event every five years. And a new PE partner. I'm now associated with a PE firm, doing some consulting.
I get the sense that a lot of people are jumping to their own conclusions about everything to do with HCC/KSL and Alterra.
This is going to take some time. Years. Yep, there will be some real estate development. Some retail/restaurant and hotel development. It will be entirely dependent on the property and the opportunity. This is NOT like the days of Les Otten building a Grand Summit Hotel, and operating it, at every single resort, just because....valid business case or not.
I will say that some of the MCP resorts are a nice potential shopping list.
Before these guys every sell, they are going to create a lot of value. Those with money in this have a clear vision of how. High end, gold standard, best in class resorts. The best. Where people are not fixed on low price.
Obviously many feel it's Epic and MTN 2.0
Or that they are going to keep all of these properties, and not acquire others. The have an almost unlimited supply of cash. They want more and start a fund, with their current investors. Unusual, even in their business. They make money, and this is their niche.
The last thing this crew wants is the BS of being a part of a public company. No need to sell yet, no need to do it to get capital.
This is not like any other ski consolidator, past or present. Everybody wants to know whst's in it for them, having been conditioned by the Epic Pass.
Let this unfold. It's interesting.