The newly established sports division of private-equity giant CVC Capital Partners has made its first acquisition with the purchase of a controlling stake in Equine Network, in a deal that values the competitive horse sports organization at $300 million.
Global Sport Group—a dedicated sports business that Luxembourg-based CVC launched in September—is buying Equine Network from Chicago-headquartered PE firm Growth Catalyst Partners. The deal values Equine Network at $300 million, a person familiar with the matter confirmed to Front Office Sports. The exact size of the stake being acquired was not disclosed.
Equine Network owns and operates about 40 competitions, including the World Series of Team Roping and National Team Roping, which is a rodeo event where two riders work together to catch a steer and bring it to a halt. The company also oversees more than 800 “third-party events.”
The press release announcing the deal calls Equine Network the “largest for profit equestrian-based sports league in the U.S.
Tom Winsor, founder and CEO of Equine Network, will remain in place. He said in the press release that “CVC’s track record in building and scaling global sports platforms, combined with the expertise of the GSG team, makes them ideal partners as we look to expand our leagues, enhance fan engagement.”
While Equine Network is the first acquisition made by Global Sport Group, it is not the unit’s first portfolio company. Including Equine Network, it now holds stakes in eight leagues and competitions, including Spanish soccer league LaLiga; the Women’s Tennis Association; French soccer governing body Ligue de Football Professionnel, which oversees leagues including Ligue 1; and the Gujarat Titans, a cricket franchise in the Indian Premier League.
CVC, which is publicly traded on the Euronext exchange, is one of many investment firms that have seized on the growth of sports as an asset class in the past year or so.
Last year saw the launch of Orlando-based Momentous Sports, which counts former NFL quarterbacks John Elway, Tim Tebow, and Blake Bortles as investors; the formation of a new sports-specific arm from Apollo Global Management; and the unveiling of a new business from Arctos Partners that will connect investors with pro sports opportunities.
Arctos, meanwhile, is in talks to sell a majority stake to KKR, whose existing sports assets include cheerleading company Varsity Brands and high school sports media and technology company PlayOn. Despite reports that Arctos and KKR have reached a deal, three sources familiar with the matter say an agreement has not yet been reached.
