(Bloomberg) -- Sixth Street, the investment firm that owns a 20% stake in the San Antonio Spurs, is planning to raise its first fund dedicated to the sports ecosystem, according to people with knowledge of the matter.
The San Francisco-based firm has held preliminary talks with potential investors about the vehicle, which will seek to invest in sports teams and leagues, media rights and related businesses, said the people, who asked not to be identified discussing confidential information.
A Sixth Street spokesman declined to comment.
The firm, led by Chief Executive Officer Alan Waxman, has made more than $2.5 billion in sports-related investments, primarily through its $29 billion TAO platform, which describes itself as “a home for between-the-box strategies and adjacent opportunities.”
Sixth Street, which manages more than $75 billion, is part of an ownership group for the National Basketball Association’s San Antonio Spurs that includes Michael Dell and the Holt family. The firm co-founded Bay FC, the National Women’s Soccer League team that counts Sheryl Sandberg among its investors.
In 2022, the firm struck a deal with Spanish soccer team Real Madrid for a stake in certain stadium operations and separately increased its stake in FC Barcelona’s LaLiga television rights to 25%. Sixth Street, which owns a majority stake in sports-experience firm Legends alongside affiliates of the Dallas Cowboys and New York Yankees, in January hired former ESPN executive Russell Wolff as a managing director.
Alternative-asset managers including Ares Management Corp., Arctos Partners and Blue Owl Capital Inc. have raised funds dedicated to sports investments, and other sector-specialist firms such as Dynasty Equity have begun making investments.
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