Credit Suisse investor makes Monumental investment in NBA, NHL teams

investmentnews.com:

When U.S. investors like Chicago-based Harris Associates started bailing from troubled Credit Suisse earlier this year, one giant global investor doubled its holdings to become the bank’s second-biggest shareholder after the Saudi National Bank.

That particular investment saw a UBS-backed rescue that came with a price tag of over quarter of a trillion francs of publicly backed loans and guarantees from the bank’s Alpine homeland. The deal saw UBS pay $3.2 billion for its smaller Swiss rival and become the undisputed global leader in managing money for the wealthy.

Following on from its Credit Suisse adventure, the Qatar Investment Authority, the prominent sovereign wealth fund, has acquired a stake in Monumental Sports and Entertainment, the owner of professional basketball and hockey teams in Washington, D.C. This marks the first time a sovereign wealth fund has invested in the U.S. sports industry.

The QIA is paying $200 million to secure a 5% stake in Monumental Sports and Entertainment. This deal values the company, which owns the NBA’s Washington Wizards, the WNBA’s Washington Mystics, and the NHL’s Washington Capitals, at $4.05 billion. The transaction was confirmed by individuals familiar with the matter.

In recent years, Gulf states, including Qatar, have made substantial investments in various sports, ranging from golf and tennis to football. These investments not only aim to boost domestic tourism and entertainment sectors but also seek lucrative returns as the industry experiences rapid growth in media and broadcasting rights’ value.

The QIA’s investment comes less than a year after the NBA modified its bylaws to allow sovereign wealth funds to invest in clubs. By entering the U.S. sports market, the QIA is