Dyal Homecourt has $500 million in assets committed to its strategy of buying limited partner stakes in NBA franchises, the company announced in an earnings call with analysts Monday.
The figure, not yet disclosed in regulatory filings, represents about a 75% increase the past four months in capital Dyal has to deploy buying minority franchise stakes. The asset manager, a subsidiary of publicly traded Blue Owl, previously told investors that total Homecourt assets amounted to $283 million as of October 31.
Speaking in prepared remarks to Wall Street analysts, Blue Owl co-president Michael Rees also confirmed that the company sold its minority stake in the Phoenix Suns “at an attractive multiple.” Sportico first reported the sale last week. Cashing out at the $4 billion valuation Matt Ishbia paid for a controlling stake of the franchise represents a 158% gain for Dyal in 18 months. The private equity fund bought into the team at a valuation of $1.55 billion in July 2021.
Dyal Homecourt was approved as the first private equity firm allowed to invest in the that summer. The fund opened with expectations of raising up to $2 billion in capital fairly quickly, but closed 2021 with a tenth of that amount. Still, the asset manager has purchased LP stakes in the Atlanta Hawks and Sacramento Kings in addition to the Suns. Unlike other private equity firms now permitted to buy into NBA teams, Dyal can take partial stakes in an unlimited number of franchises, although it has to share part of its earnings from the business with the NBA in return.
There was no other discussion of the NBA strategy during the presentation with analysts. Homecourt’s assets represent less than 1% of Blue Owl’s $138 billion in assets under management.