Hedge Funds Enter the Playing Field, Literally

October 20, 2021 James Heinsman Hedge Fund News

When AC Milan hosted Atletico Madrid in late September, it wasn’t only the two teams playing against each other. It was also a matchup between Elliott Management Corp., a New York-based hedge fund and controller of AC Milan, and Ares Management Corporation, a Californian credit fund with 34% ownership of Atletico.

Private equity, credit companies, and hedge funds make up the latest wave of sports investors. As more investment firms find themselves with extra resources, they are expanding their strategies and laying stakes in the world’s most popular sport. 777 Partners, a Florida-based financial firm, purchased Genoa in September 2021; CVC Capital Partners made a $3.2 billion private equity investment in Barcelona’s La Liga in August.

In the post-pandemic world of sports, teams are desperate to pay off debt incurred by the abrupt and prolonged cessation of games. For the hedge fund investors, the risk lies primarily in the unpredictable business model of the sporting world: team debt, bloated salaries for players, unpredictable fans, potential league demotions, and even politics.

Economy, Hedge Fund Industry, Hedge Funds, Investment, management,

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