Apollo Global Management (APO), the global investment management firm, is preparing to launch a $5 billion sports investment vehicle. The New York firm manages more than $800 billion in assets, and this marks its first time setting up permanent capital dedicated to sports. The plan is to lend to leagues and teams, while also buying stakes in clubs.
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The strategy comes as private lenders step into a market where banks are often reluctant to do so. For teams and agents, that means quicker access to cash. For investors, it can mean high yields. Apollo is also planning to make new hires to lead the push, showing that the move is designed for the long term. In the meantime, APO shares are down over 16% year-to-date.
Recent Deals Highlight a Shift in Sentiment
Apollo has already tested the space with a series of deals. Last year, it lent £80 million to Nottingham Forest Football Club, secured against assets like the team’s stadium. It also lent £40 million to Sports Invest Holdings, run by the well-known super-agent Kia Joorabchian, with an interest rate above 10%. In addition, the firm has explored bigger moves, such as talks with the Spanish soccer team, Atlético Madrid, and past plans for financing bids tied to Manchester United.
Other private equity players are active, too. CVC Capital Partners has taken stakes in La Liga (the Spanish league) and rugby’s Six Nations, while Ares Management (ARES) has lent hundreds of millions of pounds to Chelsea and Eagle Football. This shows how fast capital from private groups is reshaping the business side of sport.
Outlook for investors
As more permanent funds flow into sports, clubs and leagues gain stability and room to expand. Investors gain exposure to steady fan demand and media rights, which are seen as reliable sources of revenue. Competition among large private groups is also pushing up the value of sports assets. For Apollo, however, the new fund marks a clear step toward establishing a larger presence in global sports.
Is APO Stock a Buy, Hold, or Sell?
On the Street, Apollo holds a bullish sentiment among analysts with a Strong Buy consensus. The average APO stock price target stands at $164.67, implying a 20.88% upside from the current price.
