Inca Rail, Link to Historic Machu Picchu, Announces Investment by Carlyle Peru Fund
Carlyle to Partner with the Forsyth Family and Management to Support Improvements in Customer Experience
Lima, Peru – Inca Rail, the tourist train operator transporting travelers to the historic Andes citadel of Machu Picchu, announced that it has received a significant investment led by Carlyle Peru Fund L.P., with Carlyle South America Buyout Fund, L.P., in support of improvements in customer service and maintaining its current high standards of reliability and safety. Carlyle Peru Fund, and Carlyle South America Buyout Fund, will partner with current shareholders, the Forsyth family, and Inca Rail’s management.
Inca Rail, which began service in 2009, enables tourists to travel in comfort from Cusco to the ancient ruins of Machu Picchu, selected by Internet voters in 2007 as one of the Seven Wonders of the World, in approximately 3.5 hours, passing through the beautiful Sacred Valley and rainforests along the route. As part of Inca Rail's ethos of environmental respect, it practices and promotes responsible tourism at every available opportunity. This involves taking all actions conducive to minimizing the environmental impact of its operations, such as using fuel additives designed to minimize CO2 emissions and not using boxed packaging for on-board dining. On May 1, Inca Rail added service from Poroy to Machu Picchu.
Johnny Forsyth, Chairman of Inca Rail, commented, “We are delighted to partner with the Carlyle Peru team, who will share their resources and expertise as we operate a best-in-class rail service with reverence for the majesty of Machu Picchu and its surroundings. With the help of Carlyle, we look forward to bringing many enhancements to the customer experience and our overall service.”
Marco Peschiera, Managing Director and Head of Carlyle Peru, said, “We are excited and grateful to partner with the Forsyth family and its team, who have built a tremendous company since 2009. We will support their efforts to provide a superb Andean tourist experience while maintaining respect for this extraordinary world heritage site.”
Formed in 2013 by The Carlyle Group, Carlyle Peru Fund is a $308 million investment vehicle managed in consultation with Credicorp, Peru’s largest bank. The fund invests across industries including healthcare, retail and consumer, services to mining, construction and infrastructure businesses, and education. Other investments of the fund include Liderman, the largest security company in Peru, Hermes, a leading Peru-based cash management company, and Nuevo Mundo and Condor Travel, the country’s leading tourism conglomerate.
The Carlyle Group has extensive experience in transportation investments including past ownership of railroad operator Genesee & Wyoming Inc., rail software provider RMI, and transportation communications and systems engineering firm ARINC.
The transaction, financial terms of which were not disclosed, was completed June 30, 2016.
Carlyle was advised on the transaction by LXG Capital.
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About Inca Rail
Inca Rail, is a tourist train operator transporting travelers to the historic Andes citadel of Machu Picchu, began service in 2009 to offer its passengers the best possible travel experience, encompassing safety, comfort and absolute attention to detail. The Company has a diversified base of clients coming from all over the world. Inca Rail sells train tickets both through travel agencies and directly to customers, through ticket offices and its e-commerce platform. Inca Rail employs more than 120 people with offices in Peru, both in Lima and Cusco.
The Carlyle Peru Fund is managed by The Carlyle Group (NASDAQ: CG), a global alternative asset manager with $178 billion of assets under management across 125 funds and 164 fund of funds vehicles as of March 31, 2016. Carlyle’s purpose is to invest wisely and create value on behalf of its investors, many of whom are public pensions. Carlyle invests across four segments – Corporate Private Equity, Real Assets, Global Market Strategies and Investment Solutions – in Africa, Asia, Australia, Europe, the Middle East, North America and South America. Carlyle has expertise in various industries, including: aerospace, defense & government services, consumer & retail, energy, financial services, healthcare, industrial, real estate, technology & business services, telecommunications & media and transportation. The Carlyle Group employs more than 1,650 people in 36 offices across six continents.
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