Key Takeaways
- • NFL owners formally approved a private equity fund partnership between General Atlantic and 32 Equity, the NFL's investment vehicle, at their annual fall meeting in New York, according to Axios.
- • The fund will invest in sports-related companies, with a broad mandate expected to focus on growth-stage businesses deriving at least part of their revenue from sports.
- • Neither fund size target nor investment team leads have been disclosed; General Atlantic and 32 Equity will each act as general partners.
- • The NFL gains a new revenue stream through carried interest that does not need to be shared with players, while advancing its global expansion goals.
- • For General Atlantic, the endorsement is positioned as a high-profile addition to its imminent IPO prospectus.
Summary
Private equity firm General Atlantic and 32 Equity, an investment vehicle of the National Football League, plan to raise a fund that will invest in sports-related companies, according to Axios. The partnership was formally approved by NFL owners at their annual fall meeting in New York, with formal marketing expected to begin early next year. Talks between the two sides have been ongoing for roughly a year.
The structure gives both parties defined roles, with General Atlantic and 32 Equity each serving as general partners. Key terms have not yet been disclosed, including the target fund size and the identity of the investment team leads.
Axios reports that the fund mandate is expected to be fairly broad, focusing on growth-stage companies that derive at least part of their revenue from sports. For the NFL owners, the arrangement advances global expansion goals while creating a new revenue stream in the form of carried interest, which does not need to be shared with players.
For General Atlantic, the NFL association is a high-profile endorsement that the firm can highlight ahead of its imminent IPO prospectus.
The structure gives both parties defined roles, with General Atlantic and 32 Equity each serving as general partners. Key terms have not yet been disclosed, including the target fund size and the identity of the investment team leads.
Axios reports that the fund mandate is expected to be fairly broad, focusing on growth-stage companies that derive at least part of their revenue from sports. For the NFL owners, the arrangement advances global expansion goals while creating a new revenue stream in the form of carried interest, which does not need to be shared with players.
For General Atlantic, the NFL association is a high-profile endorsement that the firm can highlight ahead of its imminent IPO prospectus.
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