Apollo Global Management and Ares Management are delving deeper into sports finance by creating specialized vehicles to fund leagues, teams, and media. Ares is launching a semi-liquid fund for individual investors, while Apollo is considering a permanent capital vehicle for longer-term lending and equity positions in franchises and leagues. These moves come after a NFL rule change allowing private equity ownership of teams, leading to increased deal flow. Ares’ sports fund closed at $3.7 billion and has invested in franchises like the Miami Dolphins, with plans to target $100 billion from individual investors by 2028.

Both Apollo and Ares are capitalizing on the new opportunities in sports finance, with Apollo offering a long-term lending vehicle and Ares providing a retail-friendly investment fund. The aim is to leverage the strong cash flows, global fan bases, and scarcity of sports assets to generate recurring fees and align with the multi-decade investment horizons of sports franchises. However, potential risks include overvaluation of sports assets, regulatory changes, and the complexity of retail-oriented products. The success of these ventures could shape the future of sports finance and alternative asset management.

Read more at Quiver Quantitative: Why Alt Managers Apollo (APO) & Others See Trillions in Sports Adjacencies