Apollo, Ares Eye Bigger Role Backing Sports Leagues, Teams
(Bloomberg) -Apollo Global Management Inc. and Ares Management Corp., the latest Multibillion -dollar alternative asset executives are even in -depth for sports investment to put more money in the exploding sector.
Ares began to talk to investors about a new media and entertainment fund designed for individuals who are traditionally separated from their special nature of sports financing. The semi -liquid fund will target both debt and equity investments between sports leagues and enterprises.
Meanwhile, Apollo is considering creating a permanent capital tool dedicated to sports financing, which is a structure that will allow longer -term and strategic investments in the sector. The fund will first lend to professional sports teams and leagues with the option to get the equity position.
ALTS managers such as Ares and Apollo put the opportunity to invest in sports teams that were increased by the important decision of the National Football League last year to allow private capital companies to allow their own teams. In May, Bloomberg reported that a group of professional sports teams, including billionaire Dallas Mavericks minority, started a special capital fund aimed at taking small shares in professional sports teams.
Arctos Partners, CVC Capital Partners and Ares also invest in leagues and teams, Elliott Management Corp. And OakTree Capital Management received the ownership of football clubs after the owners fell in default in their loans.
The Ares Fund will be compatible with the pressure of reaching individual investors and will respond to increasing demand from financial advisors who want to expose their retail customers to the asset class. Ares aims to buy $ 100 billion from individual investors until 2028, an area that constitutes 8% of the $ 546 billion asset base.
If he succeeds, the initiative said he could produce an estimated $ 600 million management fee.
Los Angeles -based Ares increases sports investments, buys shares in NFL’s Miami Dolphins and other teams, and closes its first fund dedicated to strategy with $ 3.7 billion in 2022.
In the meantime, New York -based Apollo, Sporting Lisbon and Nottingham forest, such as giving credit to football teams, including a series of sports agreements signed a series of sports agreements.
Ares, “Sports teams, clubs and leagues often attract most attention, wider potential sports, media and entertainment investment ecosystem is important and believe that it is important,” he said. The company estimated that the total investment opportunity in “adjacent strategies” could be $ 2.5 trillion.
(Updates with potential investment opportunities in the last paragraph.)
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