ProSiebenSat.1 sells venture capital portfolio to Lexington: Reuters

German media group ProSiebenSat.1 has sold its media-for-equity investment portfolio to U.S. private equity firm Lexington Partners for around 50 million euros ($57 million).

ProSiebenSat.1’s media-for-equity portfolio was created in 2009 and operates as a venture capital firm. It gives advertising space on its television channels and digital platforms to start-up firms in return for a stake in equity or future revenue streams.

“Sales proceeds amount to a mid-double-digit million euro figure,” ProSieben said in a statement on Wednesday.,

As part of the deal, ProSieben’s venture capital arm SevenVentures will bring in up to 16 minority participations in a new joint venture called Crosslantic Capital.

SevenVentures will remain involved as a strategic partner with a minority stake of around 24.5 percent in Crosslantic.

ProSieben’s most successful use of the media-for-equity business model was Zalando, which is now listed at the Frankfurt stock exchange and has a market value of almost 10 billion euros.

ProSieben said in a statement that since its incubation the portfolio has doubled in value and generated an internal rate of return (IRR) of around 30 percent.

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