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.