According to two sources familiar with the situation, US private equity firm Dynasty Equity purchased a majority stake in Liverpool Football Club valued at $100mn or more.
The latest investment in a Premier League football team is an example of the interest that private equity has in sport, and highlights the growing market for sports-focused funds like Dynasty.
Liverpool belongs to the Boston-based Fenway Sports Group. This group is made up of media companies, professional sports teams and media outlets.
FSG has also received passive institutional investment from other sports funds such as Arctos Sports Partners, RedBird Capital Partners, and RedBird Capital Partners.
In February , the group called off a possible sale to Liverpool. However, it retained Morgan Stanley and Goldman Sachs for financial advice on outside investment options. This led to the Dynasty deal.
In a press release, FSG President Mike Gordon said that “our long-term commitment” to Liverpool was as strong as ever. We have always stated that we will pursue any investment opportunity that would help to ensure Liverpool’s financial resilience and future growth.
FSG and Dynasty stated that the new funds will be used to pay off debts accrued by Liverpool during the pandemic shut down, as well for infrastructure investments in the club’s Anfield Stadium and broader growth outside of the field.
FSG, who bought Liverpool in 2010 for £300mn (£300mn), did not reveal the value of the club after the new investment. Forbes, however, valued the club at $5.3bn, ranking it as the fourth most valuable club in the world.
The club missed out on qualifying for the Uefa Champion League at the end 2022-2023 of the season, but is now in second place within the English Premier League which it won last in 2020.
Jonathan Nelson, a veteran of asset management and Don Cornwell, an investment banker from New York founded Dynasty last year.
The pair has a long history of advising and leading sports industry deals. This includes the creation of broadcaster YES Network and the sale to Hollywood agency William Morris Endeavor of sports talent manager IMG.
Dynasty has made its first investment in Liverpool FC. Nelson and Cornwell stated in a press release that they were thrilled to partner with FSG and support the club.
In recent years, the opening of North American professional sport leagues to institutional investors has led to the launch of several funds focusing on sports. These include Arctos’ Dyal HomeCourt and Blue Owl Investments’ Dyal HomeCourt.
Traditional asset managers and private equity companies such as Ares Management and Sixth Street Partners, and Clearlake Capital, have accumulated stakes on both sides.
The high cost of purchasing entire teams or limited partnerships in North America is one factor that has led to the surge of private capital in sport.
According to a person who is familiar with Dynasty, the company will focus on purchasing minority stakes in professional leagues and clubs in North America.