Superstruct invests in Øyafestivalen
The US acquisition fund Providence Equity Partners has bought one of the biggest Norwegian festivals through the investment company Superstruct Entertainment.

The deal is the latest development in what has been a busy year for Superstruct – led by CEO James Barton, the founder of Creamfields and former president of electronic music at Live Nation.

Earlier this year Superstruct invested in Sónar festival in Barcelona, Spanish promoter Elrow and the acquisition of a majority stake in Sziget festival.

The Norwegian festival entrepreneurs will nevertheless be co-owners through shares they have secured in Superstruct.

The purchase price, and the size of the stock item for the entrepreneurs in Superstruct, is currently unknown.

"We also have a management agreement for Øyafestivalen, which gives us full control of operations as before," says Claes Olsen, co-owner and booking manager for the festival.

Olsen says that the founders want to preserve the festival and maintain the development they have had which is what the founders are best at.

The profit at Øyafestivalen fell to NOK 1.90 million last year, from NOK 2.81 million the year before.

One of the major advantages of this deal for Øyafestivalen is that the risk will no longer be limited to five individuals, says Olsen to Norwegian Newspaper Dagens Næringsliv.

Nevertheless, the festival will have the same profile and run by the same people.

"I do not think people are aware of the huge risk involved in festivals. Things start to get very expensive and the operating margin is minimal. A rainy day can have a big negative countdown, "says Olsen