The majority shareholder in Australian based operator Funlab is considering its exit options reports the Australian Financial Review.
Mid-tier private equity firm Next Capital took a controlling 70 per cent interest in Funlab in 2016 with a AUS$60m deal. It has since tapped investment bank Citi for possible involvement with the provider of Strike Bowling and Sky Zone trampoline parks.
Since Funlab CEO Michael Schreiber started the company in 2001 other concepts have been introduced such as FEC Archie Brothers Cirque Electriq (pictured) and B. Lucky & Sons. Holey Moley, the mini golf brand now has 10 sites across Australia.
Global expansion is next for Funlab on the back of a successful last two and a half years which have seen sales triple to AUD$100m and sights firmly set on doubling the current group size.
April will see Funlab open further new brands with Jukes karaoke and Red Herring escape rooms at Crown Melbourne.
Holey Moley opened in Auckland, New Zealand last October while a flagship Holey Moley opened in Singapore in December 2018.
"We have concepts that stand on the global stage," Schreiber said. "We are working on what an international plan into Asia looks like, using Singapore as a springboard. And we are evaluating the US and the UK, where language is not a barrier to entry.
"In international markets there is more blue sky, but there is still plenty of growth in Australia left."
Schreiber added that with loneliness being a widespread issue for people ingrained in a digital world, consumers were seeking in-person experiences: "There is a shift away from material possessions to experiences," he said. "We are getting a tailwind because of the shift of discretionary spend. There is a counter-balance with our digital lives. It's quite lonely and isolating, and we are feeding into that need for high touch experiences."
Next Capital said that while an IPO could be an option to back Funlab's future growth plans, it was also keen to talk to trade buyers, and at this early stage there is no preference. The company has also stated that it would consider keeping part of its stake.
