3.0x / 22% IRR
Loyalty programme operator
The Group was founded by Chief Executive Officer Alexander Rittweger, Lufthansa Commercial Holdings and Roland Berger in 1998. It operated the largest multi-partner loyalty programme in Germany with over 28 million PAYBACK cards in circulation and employed approximately 260 staff.
Set against a stable backdrop of steadily increasing consumer spending behaviour in Germany, Palamon identified that Loyalty Partner, which had a highly scalable and profitable model, had three opportunities for accelerated growth:
Worked with senior management to design and implement a number of strategic initiatives which more than doubled revenue and profitability
Loyalty Partner had 34 million PAYBACK cards in circulation and was Germany’s third most carried card, through which €15 billion of sales per year were processed. The company had doubled revenue and profits during the hold period and increased employee numbers to nearly 600 staff.
On 1 March 2011 Palamon sold its shareholding in Loyalty Partner to AMEX in a transaction valued at approximately €500 million. The transaction generated a 3.0x return on invested capital and 22% IRR.
“We have been able to achieve a step-change in the Loyalty Partner business during our five year partnership with Palamon. We greatly valued Palamon's contributions and their ability to work closely with us to develop our growth strategy and substantially expand our business”
Alexander Rittweger, CEO of Loyalty Partner