A few years ago, if you’d asked the average rugby or Formula One fan whether they thought private equity investment would be good for their sports, you’d probably have received a vociferous “No!” in response. Those with knowledge of the wider world of sports would’ve pointed to deals like the Glazer family’s 2005 leveraged buyout of Manchester United as an example of how private money could alienate fans and directly contribute to a sporting entity’s slump.
To my mind, good private equity investments are distinguished by two things: the ability to add value, and to find the right buyer when the time comes. Another good example of a private equity investor adding value in rugby is MVM Holdings, which took a, the sports management company headed by US rapper Jay Z, helped bring World Cup-winning captainand several other marquee players to the Durban-based franchise. It’s also worked with the franchise’s already savvy management team to improve theThose value additions typically aren’t made with permanent ownership in mind.
, will come into their own in the next few years. These deals will ease the flow of goods across borders on the continent, further promoting manufacturing growth. , a 10% increase in investment in SA’s manufacturing sector could yield a 13% boost to the economy and an 8% increase in employment creation. Imagine similar results across the continent.