Dyal Homecourt, the first fund established to invest in NBA franchises, has about $200 million in assets under management, according to a disclosure today.
The assets, which are current as of Dec. 31, are at the same level as of Sept. 30 and little changed from $155 million as of June 30 last year. Dyal had been approved in 2019 as the first fund to be allowed to purchase limited partner stakes in NBA teams. Under its deal, Dyal doesn’t have a limit on the number of teams it can own stakes in, unlike other funds. To date, Dyal has purchased a part of the Sacramento Kings, less than 5% of the Phoenix Suns and a stake in the Atlanta Hawks. It, like other fund investors, can’t own more than 30% in any franchise. Under its deal with the league, it splits a portion of future profits from the investments with the NBA.
Representatives for Dyal didn’t immediately reply to a request for comment.
The assets under management disclosure came with the quarterly earnings disclosure by Blue Owl Capital, Dyal’s publicly traded parent. Dyal originated the Homecourt strategy as a division of Neuberger Berman. Shortly after launching the fund, Dyal was spun off into a combination with another asset manager, Owl Rock, and taken public by special purpose acquisition company. The business has since merged with a third entity, Oak Street Real Estate Capital.
Blue Owl reported strong interest overall in its fund strategies, with total assets growing 34% to $95 billion since September. Institutional investors are said by the firm to be highly interested in alternative investment strategies generally. One of those, investing in sports franchises, has in recent years shown up on the radar of institutional investors, like pension funds and sovereign wealth funds, as a source of strong growth that tends to be less correlated with mainstream assets.
“Our commitment to providing creative solutions for sponsors and companies has led to a record year of originations and capital deployment,” said CEO Doug Ostrover in the earnings press release.
The Homecourt fund wasn’t discussed during a conference call management held with Wall Street analysts this morning.