Less than a year after the sale of the UFC, the Fertitta brothers are making their next bold move in the business world.
On Monday, Frank and Lorenzo Fertitta announced the formation of Fertitta Capital, a private equity firm with plans to invest in consumer-facing companies in technology, media and entertainment.
The Las Vegas casino magnates, who sold their majority stake in the UFC last summer in a deal worth approximately $4 billion, have fronted $500 million to start the company.
“It was, ‘We’ve sold the UFC, we’ve got some liquidity, what do we do next?’” Lorenzo Fertitta, chairman of Fertitta Capital, told the Wall Street Journal.
Former UFC CFO Nakisa Bidarian will serve as CEO of the company, which will be based in Los Angeles. According to the Journal, the company expects to invest between $20-75 million in private companies.
“There is tremendous opportunity in the market for a firm that combines patient capital with this unique team of experienced investors and operators,” Fertitta said in a press release. ”Our long-term view enables us to avoid mandated investment timelines and instead focus exclusively on what really matters—understanding the needs of the companies we partner with and helping them achieve their operational and financial objectives.”
In what’s now considered a legendary story in the sport’s business world, the Fertittas purchased the UFC, a company teetering on the verge of collapse, for $2 million in 2001. They built it over the course of a decade and a half into a company which sold for $4B to the Hollywood firm WME-IMG.
Source:: mma fighting