In a significant move, David Rubenstein, co-founder of the Carlyle Group, has spearheaded an acquisition deal for the Baltimore Orioles Major League Baseball franchise, valuing the team at $1.725 billion. This positions Rubenstein among a growing number of private equity executives making substantial investments in professional sports.
Rubenstein has brought together a consortium of investors, including Michael Arougheti, co-founder, CEO, and president of Ares, along with prominent figures from Maryland's leadership, philanthropy, and sports community, as disclosed by an insider. Rubenstein will hold the controlling interest in the team, pending approval from Major League Baseball. The proposed acquisition is expected to see Rubenstein's group initially securing just under 40% of the franchise, with plans to acquire the remaining stake after the passing of the current owner, Peter Angelos. John Angelos, son of Peter Angelos, is set to remain with the team in an advisory capacity under the new ownership.
The insider noted, "David is a Baltimore native and a lifelong fan of the Orioles."
While Rubenstein has a prominent role in the finance world as the co-founder of Carlyle Group, boasting $382 billion in assets under management, this marks his inaugural major investment in a professional sports franchise. Notably, other financial magnates, such as Josh Harris of Apollo Global Management and Tom Gores of Platinum Equity, have made significant forays into sports team ownership.
Rubenstein's consortium follows a trend of private equity executives making notable investments in sports franchises, with financial leaders increasingly diversifying their portfolios with high-profile team acquisitions.
Investment Disclaimer: This information is for informational purposes only and does not constitute an offer or solicitation for the purchase or sale of any security or investment. Past performance is not indicative of future results. Investments involve risks, and the value of investments may fluctuate. Readers should seek professional financial advice and carefully consider their own investment objectives and risk tolerance before making any investment decisions.