Dyal HomeCourt Partners wants to take its game to the next level, so its bringing on one of Nike’s former basketball lieutenants to penetrate deeper into the NBA’s growing private equity market.
The fund has hired Michael D. Jackson as a senior advisor. The former Nike (NYSE: NKE) vice president and general manager of global basketball is slated to help the fund grow its relationship within NBA circles and improve the fund’s approach to sourcing team investment deals. Jackson steps in as the NBA continues to be a catalyst in the private equity takeover across major pro sports leagues.
“I’m here to give insight into team dynamics and things of that nature,” said Jackson, a former All-American basketball player at Georgetown who had a stint in the NBA. “My goal is to give insight into why we should do what we do and [assist] in choosing the teams that provide the best opportunity… I have a nuanced understanding of what organizations are the ones that you want to invest in versus others.”
Jackson, a limited partner with the fund, brings an added perspective in his ability to identify franchises on an upward trajectory, based on his experience with cornerstone players, front-office execs and owners.
Jackson, who will work alongside co-heads Andrew Laurino and Andrew Polland, also brings a plethora of relationships with him to the NBA-focused fund, which has stake in the Atlanta Hawks, Phoenix Suns and Sacramento Kings. The fund expects to grow that number from three by end of the year, competing in an emerging space that includes Arctos Sports Partners, Sixth Street and RedBird Capital among others.
HomeCourt Partners, which is managed by Dyal Capital, a division of Blue Owl (NYSE: OWL), most recently touted $200 million in assets under management (AUM). That figure is expected to slightly increase when Blue Owl reports second quarter earnings next month.
HomeCourt Partners was the first preapproved institutional buyer of limited stakes in NBA teams in 2020. The NBA receives both an undisclosed cut of management fees and a cut of profits, according to SEC filings. The partnership provides unique rights for the Dyal fund like the ability to own up to 20% of the entire league. HomeCourt’s role also will not count against the NBA’s limit of no more than 25 beneficial owners per team.