Key Takeaways
- • Frank and Lorenzo Fertitta launched Fertitta Capital on May 1, 2017, with an initial $500 million seed fund focused on technology, media, and entertainment investments across U.S.-focused growth companies.
- • The fund will deploy capital in two tranches: $20–$75 million in primary investments (10–12 companies at full deployment) with flexibility to commit $150–$200 million in high-conviction deals, plus $1–$20 million in 10–12 early-stage startups.
- • Nakisa Bidarian, former UFC Chief Financial Officer, serves as Fertiता Capital's CEO and cofounder; the fund launched with an eight-person team targeting 10 employees by year-end 2017.
- • The Fertitta brothers capitalized on proceeds from the 2016 sale of UFC to WME/IMG for $4 billion (netting them more than $1.6 billion combined) and the 2016 initial public offering of Red Rock Resorts to seed the new investment platform.
- • Fertitta Capital operates as a family office investment vehicle with minority or majority stake flexibility, typical three-to-five-year holding periods, and capacity for co-investment partnerships on larger capital requirements.
Summary
The Fertitta brothers formally announced the launch of Fertitta Capital, a private investment firm seeded with $500 million of personal capital, positioning themselves as growth investors in consumer-facing technology, media, and entertainment sectors. The fund was founded in February 2017 and officially launched on May 1, 2017, representing a strategic deployment of wealth accumulated through their landmark UFC exit and Red Rock Resorts IPO.
Nakisa Bidarian, who previously served as Chief Financial Officer of the Ultimate Fighting Championship, leads Fertitta Capital as CEO and cofounder. According to Bidarian, the fund represents "a new platform that has $500 million of capital and that will pursue new opportunities for the family portfolio." The initial team of eight professionals is expected to expand to 10 by year-end 2017, based out of Los Angeles.
The fund's investment strategy targets primarily U.S.-focused growth companies with a dual deployment structure. The core investment range of $20 million to $75 million per company will represent the majority of capital deployment, with a target of 10–12 companies at full investment. Bidarian emphasized strategic flexibility: "If we have deep conviction in a company, nothing would stop us from committing $150–$200 million." Additionally, Fertitta Capital will allocate a smaller portion of the fund into 10–12 early-stage startups, with individual checks ranging from $1 million to $20 million. The firm maintains optionality on stake structure, taking either minority or majority positions depending on opportunity fit. Fertitta Capital also intends to co-invest alongside other private equity funds for larger capital-intensive opportunities.
The Fertitta brothers' capacity to deploy this capital stems from substantial prior exits. In 2016, an investment group led by WME/IMG acquired UFC for $4 billion, generating more than $1.6 billion in combined proceeds for Frank and Lorenzo. The same year, their Red Rock Resorts completed its initial public offering, further strengthening the family's liquidity position. Bidarian characterized Fertitta Capital's genesis as "a direct result of the UFC transaction," underscoring the strategic continuity between the brothers' prior operating experience and their new investment approach.
Nakisa Bidarian, who previously served as Chief Financial Officer of the Ultimate Fighting Championship, leads Fertitta Capital as CEO and cofounder. According to Bidarian, the fund represents "a new platform that has $500 million of capital and that will pursue new opportunities for the family portfolio." The initial team of eight professionals is expected to expand to 10 by year-end 2017, based out of Los Angeles.
The fund's investment strategy targets primarily U.S.-focused growth companies with a dual deployment structure. The core investment range of $20 million to $75 million per company will represent the majority of capital deployment, with a target of 10–12 companies at full investment. Bidarian emphasized strategic flexibility: "If we have deep conviction in a company, nothing would stop us from committing $150–$200 million." Additionally, Fertitta Capital will allocate a smaller portion of the fund into 10–12 early-stage startups, with individual checks ranging from $1 million to $20 million. The firm maintains optionality on stake structure, taking either minority or majority positions depending on opportunity fit. Fertitta Capital also intends to co-invest alongside other private equity funds for larger capital-intensive opportunities.
The Fertitta brothers' capacity to deploy this capital stems from substantial prior exits. In 2016, an investment group led by WME/IMG acquired UFC for $4 billion, generating more than $1.6 billion in combined proceeds for Frank and Lorenzo. The same year, their Red Rock Resorts completed its initial public offering, further strengthening the family's liquidity position. Bidarian characterized Fertitta Capital's genesis as "a direct result of the UFC transaction," underscoring the strategic continuity between the brothers' prior operating experience and their new investment approach.
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