The investment fund had control of Formula 1 for years and participates in the Six Nations rugby tournament
The venture capital fund CVC Capital Partners, which has bought 10% of LaLiga for no less than 2,700 million euros, has made more than 250 investments since its foundation in 1981 in many countries and sectors, including sports .
On its website it defines itself as a “world leader in private equity and credit”, with nearly $ 115 billion in assets under management and nearly $ 163 billion in committed funds. His foray into the world of sports is not new, he has an experience of more than 25 years in international competitions of volleyball, tennis, Moto GP, for many years he had control of Formula 1 and recently reached an agreement with the tournament of Six Nations rugby to win 14% of the competition for around 400 million euros.
And is that the sports industry must restructure after the coronavirus crisis has caused a huge economic hole in the accounts of all teams due to the suspension of competitions and the closure of stadiums. It is an industry that represents between 1.5% and 2% of GDP worldwide and currently needs this type of investment fund to get afloat.
The first to resort to venture capital was the Italian Serie A, which last November accepted an offer of 1.6 billion euros from CVC and Advent for 10% of a new company that would manage the audiovisual rights of Primera clubs. But the agreement ultimately fell through.
But football is not the only one going through cash problems. One of the biggest recent investments is that of the NBA, the most important basketball league in the world, which has opened up to CVC buying 15% of the Spurs, valued at 1,100 million euros. Rugby also has its share after CVC invested some 400 million euros in obtaining 14% of Six Nations, the organizer of the Six Nations tournament mentioned above, in which the teams of Scotland, France, Wales, England, Ireland and Italy. The fund then bought 28% of Pro 14 league, owned by the rugby unions of Ireland, Scotland and Wales. In 2018 CVC already acquired 27% of Premiership Rugby, the English rugby league.
And in volleyball, the same investment fund wants to put 300 million euros in the International Volleyball Federation to create Volleyball World for the commercial exploitation of major international events.
Experience in Spain
In Spain they were not strangers, especially after having acquired 20% of Gas Natural in 2018 by buying its shares from Repsol.
With offices in Madrid, the investment fund has supported Cortefiel in recent years and since 2014 has held 48% of the shares of Deoleo, the food company specialized in olive oil. In addition, in 2017 it acquired 25% of CLH, the largest hydrocarbon logistics group in Spain.