Despite perceived risks, LPs warming up to sports investing
Investing in professional sports, a relatively new pursuit of private equity firms, appears to be gaining adherents in the LP community.
Nearly 20 percent of North American LPs are invested in dedicated sports funds, Coller Capital’s Winter 2024-25 Global Private Capital Barometer found, with an additional 14 percent saying they plan to commit capital in the next few years.
The trend reflects notable LP interest in sports and entertainment strategies. Almost one in five global investors is either committed to sports, music or gaming funds or plans on doing so soon, the survey found. Of the three areas, sports is the most popular.
Coller’s survey results track a recent acceleration in sports investing. Since 2021, unprecedented billions of private equity dollars have poured into acquisitions of stakes in teams, leagues, assets (for example, media rights) and multi-asset holding companies on a global basis.
Many of the largest deals have been majority buyouts in...