US personal fairness group Silver Lake has elevated its stake within the mum or dad firm of Manchester City Football Club, making it the second-largest shareholder within the enterprise behind its Abu Dhabi house owners.
The Silicon Valley-based agency acquired a 4.1 per cent share in City Football Group from China Media Capital, taking its complete holding to 14.5 per cent.
Silver Lake, which made a reputation for itself as a tech investor, has been stepping up its bets on the sports activities trade, with investments starting from soccer and rugby to baseball. This newest deal strengthens its ties to Abu Dhabi’s royal household and Sheikh Mansour bin Zayed Al Nahyan, the billionaire royal who acquired Manchester City in 2008 and established CFG 5 years later.
CFG is now one of many greatest sport membership house owners within the trade, with investments in soccer golf equipment starting from Australia and Japan to Uruguay and the US. Silver Lake purchased its unique 10 per cent stake in CFG for $500mn in 2019, valuing the enterprise at $4.8bn.
Sheikh Mansour controls CFG by way of Abu Dhabi-based Newton Investment and Development.
Silver Lake’s rising sports activities portfolio reveals how the stability of energy within the trade is altering as personal fairness teams and billionaires purchase golf equipment and put money into leagues.
In June, it received approval to take a position NZ$200mn in New Zealand Rugby, the organisation behind the All Blacks staff, following its acquisition of a minority stake within the Australian Professional Leagues soccer group.
It can be a shareholder in sports activities merchandising firm Fanatics and in Endeavor, the New York-listed proprietor of Ultimate Fighting Championship, the combined martial arts sequence. In August, it purchased Diamond Baseball Holdings, which owns a numbers of golf equipment within the sport.
Silver Lake purchased into City Football Group after Hollywood impresario Ari Emanuel — founding father of Endeavor — launched managing associate Egon Durban to CFG’s Khaldoon al-Mubarak.
The personal fairness agency has fashioned deep ties with Abu Dhabi. Mubarak is chief govt of Mubadala, an Abu Dhabi sovereign funding fund that took a stake in Silver Lake in 2020. The following yr, Silver Lake paid about $800mn for a stake in G42, a man-made intelligence and cloud computing group with hyperlinks to Abu Dhabi’s ruling household.
China Media Capital nonetheless owns 8.2 per cent of CFG, having initially paid $485mn to amass a 13 per cent stake. That funding, which valued CFG at $3bn, got here after China’s president Xi Jinping visited Manchester City’s soccer academy in 2015.
Chinese buyers had purchased right into a sequence of European soccer golf equipment however many made for the exit after Beijing tightened capital controls in recent times.
Under CFG possession, Manchester City has received the English Premier League 5 occasions and this yr overtook rivals to prime Deloitte’s annual rating of the best revenue-generating soccer golf equipment on the earth.
Additional reporting by Cheng Leng in Hong Kong