Key Takeaways
- • Private equity firm General Atlantic and 32 Equity, the investment vehicle of the National Football League, plan to raise a fund that will invest in sports-related companies.
- • No fund size target or investment team leads have been disclosed yet; General Atlantic and 32 Equity will each serve as general partners.
- • The fund mandate is expected to be broad, focused on growth-stage companies that derive at least part of their revenue from sports.
- • For NFL owners, the vehicle advances global expansion goals and creates a new carried-interest revenue stream that does not need to be shared with players.
- • Talks between the two sides have been ongoing for roughly a year.
Summary
General Atlantic and 32 Equity, an investment vehicle of the National Football League, plan to raise a private equity fund that will invest in sports-related companies, according to the primary report. Both firms will act as general partners, but the report notes that no fund size target or investment team leads have been named yet.
The strategic logic for the league's owners centers on two points. First, the fund supports the NFL's global expansion objectives by channeling capital toward sports businesses. Second, it creates a new revenue stream in the form of carried interest, which the report notes does not need to be shared with players. That structure is likely to draw attention given the league's ongoing revenue-sharing arrangements with its players.
For General Atlantic, the partnership is a high-profile endorsement that the firm can reference in its imminent IPO prospectus, according to the report. Discussions between the two sides have been underway for about a year.
The report expects the fund mandate to be fairly broad, targeting growth-stage companies that generate at least part of their revenue from sports. Additional details on capital commitments, target size, and staffing are pending.
The strategic logic for the league's owners centers on two points. First, the fund supports the NFL's global expansion objectives by channeling capital toward sports businesses. Second, it creates a new revenue stream in the form of carried interest, which the report notes does not need to be shared with players. That structure is likely to draw attention given the league's ongoing revenue-sharing arrangements with its players.
For General Atlantic, the partnership is a high-profile endorsement that the firm can reference in its imminent IPO prospectus, according to the report. Discussions between the two sides have been underway for about a year.
The report expects the fund mandate to be fairly broad, targeting growth-stage companies that generate at least part of their revenue from sports. Additional details on capital commitments, target size, and staffing are pending.
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