LOS ANGELES–(BUSINESS WIRE)–Ares Administration Company (NYSE: ARES) introduced as we speak that funds managed by Ares have dedicated greater than $1 billion of investments during the last six months within the sports activities, media and leisure sector. Ares employs a world versatile non-public capital technique that invests in each debt and fairness investments, together with senior debt, junior debt, most popular fairness and minority fairness whereas leveraging its relationships and capabilities throughout the Ares platform.
“We imagine the robust secular demand for content material within the sports activities, media and leisure sector is driving the necessity for versatile capital,” mentioned Mark Affolter, Associate and Co-Head of U.S. Direct Lending at Ares. “We imagine that one frequent theme throughout these investments is that the COVID-19 pandemic has accelerated an current pattern the place corporations in these markets are more and more extra open to modern and institutional options. We count on this pattern will proceed.”
“Ares gives scalable capital options and invests throughout each debt and fairness within the sports activities, media and leisure sector,” mentioned Jim Miller, Associate and Co-Head of U.S. Direct Lending at Ares. “Prior to now, sports activities franchises, leagues and golf equipment borrowed by way of conventional financial institution amenities, however there’s now a rising want for extra versatile capital to satisfy the wants for growth. Ares seeks to make use of its vital capital base to supply modern capital options to satisfy the sector’s rising funding hole.”
“We imagine Ares is a compelling strategic companion for these corporations because of our long-term, affected person capital base that differentiates us from banks and different conventional capital suppliers,” mentioned Kort Schnabel, Associate and Co-Head of U.S. Direct Lending at Ares. “We deliver a collaborative and cross-functional method to the funding course of, which leverages our specialised experience throughout a variety of alternatives, geographies, property and firm sorts.”
Under is an outline of chosen transactions that Ares has just lately accomplished within the sports activities, media and leisure sector. These transactions replicate a mixture of debt and fairness and versatile structuring throughout geographies:
Atlético de Madrid
Ares acquired a minority stake in Atlético de Madrid by way of a structured most popular fairness funding. This funding offered liquidity to current house owners and can assist future progress initiatives, together with growth of the membership’s surrounding stadium. Atlético de Madrid is a Spanish skilled soccer membership and a member of La Liga.
San Diego Padres
Ares served as the executive agent and sole arranger for a senior secured credit score facility to assist the San Diego Padres’ refinancing of its current capital construction and supply progress capital for the staff. The San Diego Padres are certainly one of 30 skilled baseball organizations that compete in Main League Baseball and are a member of the Nationwide League West division.
Ares served as the executive agent and sole arranger for a second lien credit score facility to the Ottawa Senators. The Ottawa Senators are certainly one of 32 skilled hockey organizations that compete within the Nationwide Hockey League.
Ares made a minority funding as a part of a consortium led by MSP Sports activities Capital to assist finance the McLaren Racing carveout from its guardian firm McLaren Group. McLaren Racing is a globally acknowledged racing staff, primarily competing within the System One World Championship. McLaren Racing debuted on the Monaco Grand Prix in 1966 and is the one staff in historical past to win motorsport’s Triple Crown: the Monaco Grand Prix, Indianapolis 500 and 24 Hours of Le Mans.
Ares served as the executive agent and sole arranger for a senior secured credit score facility to supply liquidity for Rugby Australia within the wake of the COVID-19 pandemic. Rugby Australia is the game’s nationwide governing physique in Australia and is a member of World Rugby, Oceania Rugby and SANZAAR.
Skilled Fighters League
Ares served as the executive agent and sole arranger for a senior secured credit score facility with fairness participation to assist the Skilled Fighters League’s international progress plans. The Skilled Fighters League (PFL) is likely one of the quickest rising sports activities leagues and the #2 blended martial artwork (MMA) firm worldwide. PFL is the primary and solely in MMA with the sports activities season format the place particular person fighters compete in a daily season, playoffs, and championship.
Ares served as the executive agent and sole arranger for a senior secured credit score facility to assist Rawlings’ acquisition of Easton Diamond Sports activities. Established in 1887, Rawlings is a number one baseball and softball model worldwide. This funding supported Rawlings’s acquisition of Easton Diamond Sports activities, a number one developer and producer of baseball and softball gear with an over 40-year model historical past in diamond sports activities. This transaction solidifies the mixed firm as a number one international model and producer of premium baseball and softball gear, together with bats, gloves, balls and protecting gear.
Business Main Studio Tools Rental Firm
Ares entered right into a senior secured credit score facility in assist of an industry-leading studio gear rental enterprise targeted on movie/tv manufacturing, with deep relationships with blue-chip content material producers. Proceeds had been used, partially, to consummate two acquisitions, offering an expanded geographical presence throughout Canada and the U.S.
Ares acquired a minority fairness curiosity in Meadowlark Media to supply capital to assist the corporate’s enterprise and progress technique. Meadowlark Media is a business-to-business firm targeted on supplying premier, non-event, sports-related content material by way of a wide range of mediums. The corporate helps to facilitate content material creation throughout a number of genres and subsequently sells its content material to 3rd get together streaming and media platforms.
About Ares Administration Company
Ares Administration Company (NYSE: ARES) is a number one international different funding supervisor providing shoppers complementary main and secondary funding options throughout the credit score, non-public fairness, actual property and infrastructure asset lessons. We search to supply versatile capital to assist companies and create worth for our stakeholders and inside our communities. By collaborating throughout our funding teams, we purpose to generate constant and enticing funding returns all through market cycles. As of March 31, 2021, together with the acquisition of Landmark Companions, which closed June 2, 2021, Ares Administration’s international platform had roughly $227 billion of property below administration with greater than 1,600 staff working throughout North America, Europe, Asia Pacific and the Center East. For extra data, please go to www.aresmgmt.com. Observe Ares on Twitter @Ares_Management.
Statements included herein might represent “forward-looking statements” throughout the that means of the Personal Securities Litigation Reform Act of 1995, which relate to future occasions or our future efficiency or monetary situation. These statements usually are not ensures of future efficiency, situation or outcomes and contain plenty of dangers and uncertainties. Precise outcomes might differ materially from these within the forward-looking statements on account of plenty of elements, together with these described sometimes in our filings with the Securities and Trade Fee. Ares Administration Company undertakes no responsibility to replace any forward-looking statements made herein.