DRI purchased by Apollo Global Management, LLC

Gretchen Morgenson of the NY Times is asking the right questions.

Accounting Error May Not Derail Deal, but Ex-Director Bails Early Anyway

http://www.nytimes.com/2016/08/07/b...-deal-but-ex-director-bails-early-anyway.html

Diamond Resorts sold to Apollo ??

Just got this email this morning.
Not sure how this will effect Diamond.

A Message from Stephen J. Cloobeck

Dear Members and Owners,

I am thrilled with the completion of the acquisition of Diamond Resorts by an affiliate of funds managed by affiliates of Apollo Global Management, LLC (“Apollo”), and am confident that this transaction will only enhance your vacation experience at Diamond resorts worldwide.

Diamond Resorts was founded on the platform of The Meaning of Yes®, a customer-centric ideology that elevates the hospitality experience above all else. The company goes above and beyond to deliver exceptional vacations to its members, owners and guests so that you can enjoy a lifetime of memories and experiences that can be passed down from generation to generation. Over the years this platform has transformed into a core belief and our philosophy of We Love to Say Yes®.

I am confident that the new owners will be excellent stewards of my legacy and continue to build this company upon its strong foundation and will remain focused on providing you with service excellence. You will continue to experience the highest level of hospitality while vacationing with your family at Diamond Resorts and there should be no changes in the day-to-day operations of the business.

I am also pleased to announce that Apollo has offered me a special position to assist them as an advisor, leveraging my expertise in the hospitality sector. Although I will no longer have an ownership position in or direct relationship with Diamond Resorts, I will be available to consult with the Apollo team regarding current and future investments in this sector, including Diamond Resorts. I look forward to this next chapter and wish you many more unforgettable vacation memories to come with Diamond Resorts.

Sincerely,
Stephen J. Cloobeck
Founder

Quimby4 said:

Just got this email this morning.
Not sure how this will effect Diamond.

A Message from Stephen J. Cloobeck

Click to expand...

It is not clear to me that Cloobeck has had much involvement in the management of the company since 2013 when he stepped down as CEO. Most of the current senior managers were hired by Palmer. Palmer, Bentley, and Lanznar will continue as the company's officers and yesterday the latter two were appointed to the Board of Directors (Palmer continues as a director).

All the indications that I've seen are: no change in the business plan. Private equity's role seems to be to protect the company from the lack of confidence in DRII's strategy among the many Wall Street funds. Remember this company was challenged in a public letter by two hedge funds last October. If the Wall Street fund managers are right and at some future date Palmer's strategy is shown to be unsustainable, then the financial wizards at Apollo will step in and shake things up.

Sounds like business as usual; David Palmer and his staff are still at Diamond and there were no changes in the upper management tier. Also, sounds like upper management tier sold a lot of stock to Apollo Global Management and make a big profit .