In 2019, Adam Silver initiated a movement to relax the ownership policy of NBA teams for institutional investors, mainly Private Equity (PE) firms. Before that, although nothing prevented affiliates of these Private Equity funds from making contributions, the entities themselves were not allowed to make transactions. With this change, the growth equity potential contributed by such institutions proved to be essential for the liquidity, financial diversification and monetization of these teams – which had an average valuation of around 2 billion dollars.
In today's pill, we capture a peculiar moment where teams affiliated with PE's compete in the NBA finals while revisiting the main points to take into account in attracting these investors that were studied in detail in the study published by Ártica in 2020 “Attracting Private Equity Investments – What is most valued by managers”. Check it out at the link:
