LOS ANGELES–(COMMERCIAL THREAD) – Ares Management Corporation (NYSE: ARES) today announced that funds managed by Ares have committed more than $ 1 billion in investments over the past six months in the sports, media and entertainment industries. entertainment. Ares employs a flexible global private equity strategy that invests in both debt and equity investments, including senior debt, junior debt, preferred stocks and minority stocks, while leveraging its relationships and its capabilities on the Ares platform.
“We believe that the secular strong demand for content in the sports, media and entertainment industry is driving the need for flexible capital,” said Mark Affolter, partner and co-head of US direct lending at Ares. “We believe that a common theme to these investments is that the COVID-19 pandemic has accelerated an existing trend whereby companies in these markets are increasingly open to innovative and institutional solutions. We expect this trend to continue.
“Ares provides scalable capital solutions and invests both debt and equity in the sports, media and entertainment industry,” said Jim Miller, partner and co-lead of direct lending in the United States at Ares. “In the past, sports franchises, leagues and clubs borrowed through traditional banking facilities, but there is now a growing need for more flexible capital to meet expansion needs. Ares seeks to use its large capital base to provide innovative capital solutions to fill the sector’s growing funding gap.
“We believe that Ares is an essential strategic partner for these companies because of our long-term patient capital base which differentiates us from banks and other traditional capital providers,” said Kort Schnabel, Partner and Co-Head of direct loans in the United States at Ares. “We bring a collaborative, cross-functional approach to the investment process, which leverages our specialist expertise across a wide range of opportunities, geographies, assets and business types. ”
Below is a description of the selected transactions that Ares has recently concluded in the sports, media and entertainment sector. These transactions reflect a mix of debt and equity and flexible structuring in all geographies:
Atlético de Madrid
Ares acquired a minority stake in Atlético de Madrid through a structured preferred stock investment. This investment has provided liquidity to existing owners and will support future growth initiatives, including the development of the club’s surrounding stadium. Atlético de Madrid is a Spanish professional football club and a member of La Liga.
San Diego Padres
Ares served as the sole administrative agent and arranger for a senior secured credit facility to support the San Diego Padres’ refinancing of its existing capital structure and to provide growth capital to the team. The San Diego Padres are one of 30 professional baseball organizations that participate in Major League Baseball and are members of the National League West Division.
Ares acted as the administrative agent and sole arranger of a second-tier credit facility for the Ottawa Senators. The Ottawa Senators are one of 32 professional hockey organizations that participate in the National Hockey League.
Ares made a minority investment as part of a consortium led by MSP Sports Capital to help finance the exclusion of McLaren Racing from its parent company McLaren Group. McLaren Racing is a globally recognized racing team, competing primarily in the Formula 1 World Championship. McLaren Racing made their Monaco Grand Prix debut in 1966 and are the only team in history to win the Triple Crown of motorsport. : the Monaco Grand Prix, Indianapolis 500 and the 24 Hours of Le Mans.
Ares served as the administrative agent and sole arranger for a senior secured credit facility to provide liquidity to Rugby Australia in the wake of the COVID-19 pandemic. Rugby Australia is the national governing body for sport in Australia and is a member of World Rugby, Oceania Rugby and SANZAAR.
League of Professional Fighters
Ares served as the sole administrative agent and arranger for a senior secured credit facility with equity participation to support the Professional Fighters League’s global growth plans. The Professional Fighters League (PFL) is one of the fastest growing sports leagues and the second largest mixed martial arts (MMA) company in the world. The PFL is the first and only in MMA with the sports season format where individual fighters compete against each other in the regular season, playoffs and championships.
Ares served as sole administrative agent and arranger for a senior secured credit facility to support Rawlings’ acquisition of Easton Diamond Sports. Founded in 1887, Rawlings is one of the premier baseball and softball brands in the world. This investment supported Rawlings’ acquisition of Easton Diamond Sports, a leading developer and manufacturer of baseball and softball equipment with a more than 40-year brand history in diamond sports. This transaction consolidates the combined company as a leading global brand and manufacturer of premium baseball and softball equipment, including bats, gloves, balls and protective gear.
Industry leading studio equipment rental company
Ares has entered into a senior secured credit facility in support of a leading studio equipment rental company focused on film / television production, with strong relationships with premier content producers. The proceeds were used, in part, to complete two acquisitions, providing an expanded geographic presence across Canada and the United States
Ares acquired a minority stake in Meadowlark Media in order to provide capital to support the business and growth strategy of the company. Meadowlark Media is a business-to-business company focused on delivering premier, non-event and sports-related content through a variety of mediums. The company helps facilitate the creation of content across multiple genres and subsequently sells its content to third-party streaming and media platforms.
About Ares Management Corporation
Ares Management Corporation (NYSE: ARES) is a leading global alternative investment manager providing clients with complementary primary and secondary investment solutions in the asset classes of Credit, Private Equity, Real Estate. and infrastructure. We seek to provide flexible capital to support businesses and create value for our stakeholders and within our communities. By working together among our investment groups, we aim to generate consistent and attractive investment returns throughout market cycles. As of March 31, 2021, including the acquisition of Landmark Partners, which closed on June 2, 2021, Ares Management’s global platform had approximately $ 227 billion in assets under management with more than 1,600 employees operating in America. North, Europe, Asia-Pacific and the Middle East. East. For more information, please visit www.aresmgmt.com. Follow Ares on Twitter @Ares_Management.
Statements included in this document may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, which relate to future events or our future financial performance or conditions. These statements do not constitute guarantees of future performance, conditions or results and involve a number of risks and uncertainties. Actual results may differ materially from forward-looking statements due to a number of factors, including those described from time to time in our filings with the Securities and Exchange Commission. Ares Management Corporation assumes no obligation to update any forward-looking statements contained in this document.