NFL owners approved a deal Tuesday to create a joint venture between 32 Equity, the league’s in-house investment platform, and the private equity firm General Atlantic.
The deal comes 11 months after NFL Chief Financial officer Christine Dorfler told SBJ discussions were underway about how to grow 32 Equity. “It’s been very successful, but is there a different structure that can help us scale it even further?” Dorfler said last November. Terms of today’s deal were not disclosed.
A joint statement from the parties reads: “With a shared long-term perspective, General Atlantic and 32 Equity aim to advance new ways for people to experience and engage with sports, broaden access across markets around the world, and back innovative companies developing new technologies, platforms and experiences shaping the industry’s future.”
32 Equity was founded by the NFL in 2013 with each of the 32 teams giving $1 million to seed the fund. Two subsequent capital calls have grown the fund to about $250 million, not including investment returns. It’s invested in 42 companies, according to Pitchbook, including Fanatics, On Location, Clear and the new pro flag football league with TMRW Sports and other investors.
While successful, some owners and executives had been pushing the league to get more aggressive. In GA, they found a partner who also believes there’s substanial growth still to come in areas of sports including media, fan engagement, ticketing, hospitality, consumer products, and other support technology and services.
32 Equity is run by Sumit Varshney, senior vice president of Corporate Strategy and Strategic Investments. He reports to Dorfler. PJT Partners advised 32 Equity on the partnership.
General Atlantic has about $130 billion under management, and has stakes in the non-alcoholic beer brand Athletic and 49% of the Mexican soccer side Club América.
Bloomberg first reported the deal.