Squaw Valley Bought by KSL Capital Partners
KSL Capital Partners, the Colorado-based private equity firm, agreed to acquire California ski resort The Squaw Valley Development Co.
Based near Lake Tahoe in Northern California, Squaw Valley hosted the 1960 Olympic Winter Games. The deal is expected to close this year.
KSL, which makes travel and leisure investments, has had, or still has, stakes in properties including Grand Wailea Resort Hotel & Spa, Arizona Biltmore Resort & Spa, La Costa Resort and Spa, Doral Golf Resort & Spa, Hotel del Coronado, the Claremont Hotel Club & Spa, the San Francisco Bay Club and its sister clubs, and ClubCorp.
KSL’s Eric Resnick and Michael Shannon, founders and managing directors, worked on the transaction for the private equity firm.
The Cushing family, which owned an unspecified stake in the resort property, is making an exit likely ahead of an expected tax increase.
Private equity firms have made investments in distressed resort and property operations recently, as assets continue to rebound from valuation lows brought on in the recession. Some PE firms are still getting wiped out of resort and property deals they got into during far headier times. Sea Island Co. got a DIP loan from Oaktree Capital Management and Avenue Capital Group as the resort operator looks to rebound from bankruptcy. Oaktree also invested, alongside Vornado, in a stake in LNR Property Corp earlier this year.
Additionally, PE firms Permira, Cinven and Candover were wiped out of their investment in Gala Coral and the resort was turned over earlier this year to creditors Apollo Management, York Capital, Park Square and Cerberus.