Angelo, Gordon and Company has established Adrenaline Family Entertainment, Inc. in conjunction with its acquisition in August of Clementon Lake Park in Clementon, New Jersey. Financial terms of the transaction were not disclosed.
Clementon Lake Park, located on approximately 55 acres of land, comprises amusement park rides and a water park. Through its new entertainment company, Angelo seeks to build a diversified portfolio of amusement park operations through acquiring and development of assets.
“We see [these developments] as very attractive cash-flowing businesses that also have significant underlying asset value,” said Dan Bonoff, a managing director at Angelo Gordon.
There are also significant barriers to entry in this niche market, according to Bonoff. “There aren’t a ton of these [developments] that are going up,” Bonoff added. “The parks that are out there have been out there for a while and as such they kind of generate their own local flavor and become real local destinations.”
Adrenaline Family Entertainment will be led by chief executive Hue Eichelberger, the former executive vice president of the eastern region for Six Flags, Inc., and chief financial officer Russell Kuteman, also formerly with Six Flags.
Angelo is targeting developments across the US with its new company and is currently in active discussions with park owners in different markets.
In September, the New York alternative investment firm acquired a 50 percent interest in a portfolio of Solo Cup manufacturing facilities throughout the US for $65 million (€44 million). Earlier this year, the firm also completed a $6.4 million net lease deal with ice-cream manufacturer and restaurant company Friendly Ice Cream Corporation.
Founded in 1988, Angelo Gordon currently has $16 billion under management. In addition to its headquarters in New York, the firm also has offices in Los Angeles, Chicago, London, Hong Kong, Seoul and Shanghai.