Auctus Private Equity Fund has committed to investing up to $10 million in Island Breeze International (OTCVV: IBII). The company is a developing cruise company with two vessels currently under renovations. The investment is structured with Auctus committing to purchase up to $10 million of the company's class A common stock over a three year period, which the company is not obligated to draw down.
There has been $74 billion invested by private equity investors in 106 leisure-related companies since the beginning of 2007, according to the PitchBook Platform. 2009 held up relatively well compared to 2008, with 15 deals compared to 20, representing only a 25% drop. However, both years are significantly down from 2007 when there were 70 investments totaling $38.3 billion. Compared to that, the 2008 to 2009 two-year average of 17.5 deals per year represents a 75% drop in dealflow from 2007. The hotels & resorts sector is the leading the industry with 55 deals. 43 of those came in 2007 before the recession and high gas prices affected consumer travel in 2008 and 2009. The top investors in the sector since 2007 have been Apollo Investment Management, The Blackstone Group and GTCR Golder Rauner.