Direct secondaries firm Cipio Partners stands to make a return multiple of nearly 3x on its investment in buyVIP, which online retailer Amazon is expected to purchase for around €70 million this week, according to several market sources.
Cipio is the largest shareholder in the “private buying club”, which sells discount, end-of-the-line and rare designer goods to its members. It acquired its stake of nearly 30 percent in the Spanish company via the purchase of a portfolio of assets from 3i in 2009. PEO reported earlier this year that Cipio had already exited three of the businesses purchased from 3i in 2009 for a combined return of more than 7x.
3i did not immediately return a request for comment. Cipio declined to comment.
buyVIP’s second-largest shareholder is growth capital-focused Kennet Partners, which led a €15 million Series D funding round in April 2009. Kennet committed more than €11 million to the round, while the rest came from existing investors Bertelsmann Digital Media Investments, 3i, Molins Capital InversiÓn and Active Capital Partners.
Kennet did not immediately return a request for comment.
Amazon is also rumoured to be interested in Vente Privee, a similar members-only website backed by private equity firms including Summit Partners.
Last week, Belgian private equity firm Gimv invested €4.9 million in competitor site Private Outlet, which is also backed by Turenne Capital, Kreos Capital, GP Bullhound and BayTech Ventures.