Sports' Saturday: Top sports news in private equity

Apollo Global Management is preparing to launch a $5bn sports investment vehicle as it accelerates its push into the fast-growing sports finance sector, according to the Financial Times.

The New York-based firm, which manages more than $800bn in assets, will make its first permanent capital allocation to sports and hire a team to oversee the initiative. The strategy will combine lending to sports clubs and leagues with equity stakes in teams.

McLaren Racing is set to be valued at more than £3bn after Mumtalakat, Bahrain’s sovereign wealth fund, and Abu Dhabi-based CYVN Holdings agreed to acquire the 30% stake held by MSP Sports Capital, Ares, UBS O’Connor, and other minority investors, according to Sky News.

The deal, expected to be announced this week, will give the Gulf investors full ownership of McLaren Racing and marks a stellar return for MSP Sports Capital and other backers who supported McLaren during the pandemic.

Read more here.

West Ham United are in advanced discussions to sell up to 49% of their women’s team to Monarch Collective, the U.S. private equity fund specialising in women’s sports, in a deal that would value the Women’s Super League (WSL) side at about £55m, according to The Guardian.

The club’s current ownership group – David Sullivan, Daniel Kretinsky, and the Gold family – would retain majority control if the deal is completed. West Ham would become the second WSL team this year to sell equity to U.S. investors, following Chelsea’s £20m sale of a 10% stake in May to Alexis Ohanian, the Reddit co-founder. Aston Villa are also reported to be in talks with American investors over a similar move.