RedBird-backed FSG to buy Pittsburgh Penguins, Brookfield to grow 'size and scale' of private equity platform

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The Wire

Nov. 30, 2021

RedBird-backed FSG to buy Pittsburgh Penguins, Brookfield to grow 'size and scale' of private equity platform

It looks like high-profile sports investor RedBird Capital Partners is making good on a pledge to help grow its new portfolio company Fenway Sports Group. FSG officially announced an agreement to buy the Pittsburgh Penguins, the legendary hockey franchise that won the Stanley Cup five times (1991, 1992, 2009, 2016 and 2017).

The sellers are former Penguins captain Mario Lemieux and businessman Ron Burkle, who acquired the team in 1999. The transaction, expected to wrap up before the end of the year, will see them remain part of the ownership group.

FSG was anchored by the Boston Red Sox and Liverpool Football Club when RedBird made its initial investment in March. James and Carter were also part of that deal, as was businessman Paul Wachter. Awarding FSG with an enterprise value of $7.35 billion, it is RedBird’s largest transaction to date. Read it here on Buyouts.

In case you missed it because of Thanksgiving Day festivities, check out Buyouts story about the launch of Brookfield Asset Management’s latest flagship buyout fund. Brookfield Capital Partners VI is targeted to raise $12.5 billion, sources said, though the hope is to bring in as much as $15 billion.

There are two interesting aspects to this story. The first is Brookfield’s ambitious plan to make its $91 billion PE platform “the same size and scale” as its most established platforms, such as real estate. That’s according to Cyrus Madon, head of the private equity group.

The second is Brookfield’s aim, under Fund VI’s banner, to dive into the red-hot healthcare and tech sectors. The groundwork for this was laid in a pair of debut deals: the 2019 acquisition of Australia’s Healthscope and this year's purchase of Singapore’s Everise.

Read the full wire commentary on PE Hub...

Also of note (may require subscriptions)

Check out New Private Markets' mid-year reshuffle of its Impact 20, a proprietary ranking of the largest private markets impact managers.

Alternative proteins company Impossible Foods has completed a $500 million funding round led by existing investor Mirae Global Investments. (New Private Markets)

Striking miners at Warrior Met Coal in Alabama say "dividends taken by Apollo, Blackstone and KKR when Warrior exited bankruptcy came at workers' expense." (Financial Times)

"On Tuesday the [UK] government will announce plans to allow "well-designed" performance fees, typically levied by private equity and venture capital managers, to be excluded from a workplace pension fee cap, according to details of the proposal seen by the Financial Times."