Sports investment continued its maturation last week with a pair of new launches from Apollo Global Management and Arctos Partners: Apollo with a dedicated financing platform, and Arctos with a high-net-worth placement desk.
Apollo launched Apollo Sports Capital, a permanent capital holding company led by new chief executive Al Tylis, with partners Rob Givone and Lee Solomon as co-portfolio managers and Sam Porter as chief strategy officer.
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The mandate will focus on credit and hybrid opportunities across professional franchises and leagues, venues and stadium financing, and media rights and events.
It’s not a new strategy, says the firm, but rather an extension and formalization of existing work: Apollo has already deployed more than $17 billion across sports and entertainment.
“We bring patient capital, extensive networks, and a range of solutions that go beyond the typical equity-only strategies. Lee, Rob, Sam, and the Apollo team have extensive experience investing across this ecosystem, and together we’ve set out to build something differentiated and enduring in the world of sports,” said Tylis.
New addition Tylis comes with industry experience and has owned or chaired Mexico’s Club Necaxa, Colombia’s La Equidad, and the Brooklyn Pickleball Team, and serves on the boards of G2 Esports, United Pickleball Association, and Canvas Property Group.
“We’ve known Al for many years. He brings a rare combination of investment and operational success in both sports and real estate,” said John Zito, Apollo Asset Management co-president.
Even before ASC, it’s been an active year for the firm.
Apollo has provided loans to several European soccer clubs, including Sporting Lisbon and Nottingham Forest. It’s also been in talks to acquire a majority stake in Atlético de Madrid, has explored financing European football transfers, and has discussed a league-level initiative with Mexico’s top division to help sell its television rights.
At Arctos, a firm already focused solely on sports, the latest initiative is a build-out of its distribution capabilities. The Dallas-based firm launched Arctos Capital Markets to identify sports investment opportunities and connect them to high-net-worth individuals.
Arctos says it’s the only private investment firm approved to own equity across all five major North American men’s professional leagues and is the largest institutional owner of North American sports equity globally, with stakes in more than 25 teams.
Its portfolio includes 10 percent stakes in the Buffalo Bills and Los Angeles Chargers (following last year’s opening up of the NFL to institutional investment, with Arctos the first private equity firm to own stakes in multiple teams), as well as investments in the NBA’s Warriors and Kings, MLB’s Giants, Dodgers, and Astros, and the NHL’s Penguins, Devils, and Lightning; the firm also holds an interest in Liverpool.
“Our goal is simple: be the first call,” said Doc O’Connor, co-founder and co-managing partner. “If you are an individual investor seeking direct sports franchise ownership exposure, Arctos Capital Markets offers an efficient path to minority or control ownership.”