A consortium led by Ari Emanuel and backed by Apollo Global Management and RedBird Capital Partners has reportedly outbid CVC Capital Partners in a deal to acquire the Madrid Open and Miami Open for over $1bn, according to Bloomberg.

The transaction, which is yet to be finalised, forms part of a wider asset divestment strategy by Endeavor Group Holdings. The company is offloading various businesses following a take-private deal by private equity giant Silver Lake.

The two tournaments, which are part of the ATP Tour Masters 1000 and WTA 1000 series, are among the most prominent in global tennis outside of the four Grand Slams. Endeavor’s wider portfolio may also be included in the deal, such as the Frieze Art Fair and other events in Chengdu and Hong Kong.

CVC had previously been preparing a $1bn bid for the same portfolio. Other firms, including EQT, Providence Equity Partners, and sovereign wealth interests from Saudi Arabia, were also reportedly eyeing the assets. The sale process has been managed by The Raine Group.

If the transaction closes, it would further expand RedBird’s growing footprint in global sports. The firm already holds ownership in AC Milan, stakes in Alpine Formula One, the United Football League, and Fenway Sports Group, which owns the Boston Red Sox, Pittsburgh Penguins, and Liverpool FC.

The Madrid and Miami Opens add yet another high-profile asset class to Apollo and RedBird’s growing alternative investment strategy, underlining the increasing role of private equity in the global sports and entertainment landscape.

Source: Bloomberg