Six Nations investors CVC Capital Partners in debt plan talks with Ares, reports
CVC Capital Partners’ recently formed £9bn sport fund juggernaut is in talks with Ares Management about a mega debt deal.
The Global Sport Group – which includes investments such as LaLiga, Premiership Rugby and the Six Nations – is reportedly in talks with a number of firms including US-based Ares Management over a multi-billion dollar debt deal, according to Sky News’ Mark Kleinman.
CVC Capital Partners enjoys $225bn in assets under management and is reportedly looking at a future that could involve Gulf sovereign wealth.
The Global Sport Group is chaired by former EE chief Marc Allera and includes the private equity giant’s sporting assets. CVC Capital Partners have assets in volleyball as well as the Gujarat Titans Indian Premier League team, which they sold a majority stake in recently with plans to offload their remaining investment on the subcontinent.
CVC debt deal?
The financing package is reportedly going to be secured on “favourable terms” but it could see Ares Management lead Global Sport Group syndicate.
Ares is currently in a raise period having had commitments of $1bn earlier this year, and were one of the investors that exited McLaren Racing in a deal that valued the related Formula 1 team at around $5bn.
They also went into business with Kylian Mbappe when they purchased the French SailGP team, while they were beneficiaries when John Textor sold his 45 per cent stake in Crystal Palace earlier this year.
There is a growing trend of major funds across private equity getting involved with sport. Only last month Apollo Global Management were reportedly looking to raise $5bn for a dedicated fund with an intention to buy a stake in Atletico Madrid.
CVC’s investments in sport have seen mixed returns, with some assets faring much better than others, and a debt deal with funds including Ares could pave the way for a number of minority stake sales.
Ares and CVC declined to comment to Sky News.