B1G Exploring Private Capital Investment

[V-Doub]

I think that summary is somewhat accurate, although a 10% stake means they have the weight of about 2 schools, so they would have a bigger seat at the table than any B1G member (although theoretically, their ownership is only of this new subsidiary that gets all the revenue/licensing payouts, not the conference itself).

That format is also basically what private equity is. The only difference between this and "private equity" is that it's a public pension fund that's acquiring the stake instead of a private hedge fund. The author basically says as much in the replies.

I remain extremely skeptical that this is a good long-term deal for the health of CFB/B1G/individual programs, and likely means a California government entity will have their fingers in many of the conference workings.

They (PE) are buying into a company (B1G) that’s too big to fail. We’re taking their cash upfront to be used by current members in exchange for10% of future profits. On the surface it sounds like a great deal for both parties, but of course the devil is always in the details.

 

[KidsSeeGhosts]

That format is also basically what private equity is. The only difference between this and "private equity" is that it's a public pension fund that's acquiring the stake instead of a private hedge fund. The author basically says as much in the replies.

Pension funds and endowments invest in PE funds all the time. They’re just investing direct instead of as part of a syndicated fund.

Pooled capital buys shit. From there it’s about fees, allocations, and mandates, but general principle is pretty much the same.