Insight

Ares racks up $3.7bn for sports, media and entertainment fund

The fund will invest in sports leagues, sports teams and sports-related franchises, as well as media and entertainment companies.

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  • SME’s investments include Atlético de Madrid, the San Diego Padres, McLaren Racing and Inter Miami CF
  • The fund’s advisory board includes Mia Hamm, former FIFA player and co-owner of Los Angeles Football Club; Michael Lynton, chairman of Snap, former CEO of Sony Pictures; and multiple award-winning recording star Lionel Richie
  • As of June 30, 2022, Ares Management had approximately $334 billion of assets under management

Ares Management Corporation has raised $3.7 billion for its oversubscribed inaugual sports, media and entertainment fund, beating its $1.5 billion target.

Ares Sports, Media and Entertainment Finance will invest in sports leagues, sports teams and sports-related franchises, as well as media and entertainment companies.

To date, SME has committed capital to 19 portfolio companies, which represents approximately $1 billion of opportunities across the sports, media and entertainment landscape, including debt and/or equity investments in Atlético de Madrid, the San Diego Padres, McLaren Racing and Inter Miami CF.

The fund boasts a star-studded lineup of advisors, including Mia Hamm, former FIFA player and co-owner of Los Angeles Football Club; Grant Hill, former NBA player, co-owner of the Atlanta Hawks; Michael Lynton, chairman of Snap, former CEO of Sony Pictures; and Lionel Richie, international recording artist, Oscar, Golden Globe and Grammy Award Winner.

“We are grateful to our investors for their overwhelming support for our inaugural sports, media and entertainment fund,” said Mark Affolter, a partner and co-head of U.S. direct lending at Ares. “We have witnessed significant demand for new and original content among fans, streaming platforms and networks and this has driven sports related businesses to require flexible and scalable capital to help fuel this secular growth.”

As of June 30, 2022, Ares Management had approximately $334 billion of assets under management, with over 2,300 employees operating across North America, Europe, Asia Pacific and the Middle East.