Alex Rodriguez goals to lift sports-focused buyout fund value ‘billions’

Alex Rodriguez is trying to increase a large buyout fund that may put money into professional sports activities groups within the US and overseas, The Put up has realized.

The previous Yankee slugger’s nascent non-public fairness fund would intention for minority stakes in professional franchises throughout US leagues together with MLB, the NFL and the NHL, in addition to sports activities groups abroad starting from soccer to cricket, in keeping with individuals with information of the fund.

Whereas the hoped-for measurement of the sports-focused fund couldn’t instantly be realized, a supply near the scenario stated A-Rod is gunning for a warfare chest in “the billions.” 

That’s even though Marc Lore, the e-commerce billionaire who has partnered with A-Rod to buy the Minnesota Timberwolves, received’t be collaborating within the new fund, insiders stated.

A-Rod is actively trying to rent administration for the fund and has introduced in recruiters to assist with that effort.

Fundraising remains to be within the early levels and A-Rod might determine to scrap it at any time, sources cautioned.

“Alex’s profitable buy of the Timberwolves franchise has drawn the curiosity of enormous PE corporations and institutional traders who’re courting him to create sizable PE funds that will put money into the broader sports activities and actual property universe,” a supply with information of the scenario instructed On The Cash.

A spokesperson for A-Rod declined to remark.

A ten-figure fundraising would put the A-Rod fund in league with different main gamers in sports activities investing like Arctos Sports activities Companions — a minority proprietor within the Golden State Warriors that’s reportedly near elevating a $2.5 billion fund — and Gerry Cardinale’s RedBird Capital Companions, proprietor of the Boston Crimson Sox and Liverpool FC. 

Ares Administration, whose founder Tony Ressler personally owns the Atlanta Hawks, additionally has raised $3.7 billion. Avenue Capital Group CEO Marc Lasry has introduced plans for a $2 billion to $3 billion sports activities fund. 

A-Rod is trying to capitalize on skilled sports activities groups’ rising want for minority traders as their valuations have ballooned.

Inside the previous few years, the MLB and NBA at the moment are letting homeowners promote minority stakes of their groups to personal fairness funds.

NFL workforce homeowners are pushing for the league to permit non-public fairness to take minority stakes.

Sources near the scenario famous, nevertheless, that A-Rod’s deal to purchase the Timberwolves would doubtless bar his new fund from additional investments in NBA groups.

“Alex Rodriguez, A-Rod Corp and Marc Lore are centered on constructing the Timberwolves and the Lynx franchises and bringing a championship to Minnesota,” a supply near the scenario stated. “The 2 are slated to develop into the bulk homeowners of the franchise subsequent 12 months.”’

A-Rod and Lore ponied up $250 million in July 2021 for a 20% stake.

They elevated the stake to 40% on March 28, and can make yet one more fee taking their stake to 60% over the following 12 months or so, in keeping with sources.

A supply with information stated A-Rod notes he has a “lengthy historical past of investing, having first invested in actual property throughout his enjoying days.

Along with the Timberwolves, ARod Corp has greater than $5B of actual property investments together with many different enterprise and PE investments.”

However a few of A-Rod’s latest ventures have confronted challenges.

His $500 million SPAC, Slam Corp., was unable to finish a merger with sports activities collectives firm Panini.

Shortly thereafter, 61% of traders redeemed their shares, slashing the fund’s worth to $224 million.