Blue Owl Capital’s HomeCourt Partners fund has acquired a minority stake in the NBA’s Cleveland Cavaliers, according to a report by Bloomberg.
Financial terms were not disclosed. Bloomberg previously reported that the Cavaliers were in advanced talks to sell between 5% and 10% of the franchise to Blue Owl. The team is valued at $4.86bn, according to Sportico, making it the 16th most valuable franchise in the NBA.
HomeCourt Partners, which focuses on minority investments in NBA teams, also holds stakes in the Atlanta Hawks, Sacramento Kings and Minnesota Timberwolves.
Blue Owl co-president Michael Rees said sports investing is becoming a “rapidly growing” alternative investment strategy, supported by diversification benefits and the potential for stable income streams.
NBA rules allow private equity firms to hold minority stakes in up to eight teams. A single institutional investor can own no more than 20% of a franchise, while institutional investors collectively are capped at 30%.
