This week’s news that the Buss family agreed to sell control of the Los Angeles Lakers to Mark Walter at a record $10 billion valuation comes less than two months after a sovereign wealth investment into Walter’s holding company TWG Global.
Mubadala Capital, an investment arm of Mubadala Investment Company, a sovereign wealth fund based in the United Arab Emirates, agreed to a multibillion-dollar alliance with TWG at the end of April. As part of the deal, Mubadala pledged to lead a $10 billion investment in TWG, which in turn acquired a minority stake in the asset manager along with a promise to commit $2.5 billion to Mubadala products, the companies said in a joint press release. TWG plans to increase its investment in the partnership by as much as $20 billion over time, the company said.
Mubadala doesn’t hold direct stakes in the NBA or any other major North American sports leagues or teams. Its current sports portfolio includes a 20% stake in Brazilian soccer commercial rights, a portion of FIM supercross motorcycle racing, a partnership with SailGP—including ownership of the Mubadala SailGP Brazil team—and development in Zayed Sports City, a sports and entertainment complex in Abu Dhabi. Mubadala Capital parent Mubadala Investment Company has also been a long-time supporter and sponsor of professional tennis. Mubadala Capital declined to comment.
The UAE has also been a long-time supporter of mixed martial arts and the UFC, striking a five-year deal in 2019 that was later extended to 2028.
The NBA in late 2022 adopted rules allowing investment from private equity and sovereign wealth funds, which include a 20% limit of a fund’s ownership in any team. Private equity funds may own up to five teams, and no single team may sell more than 30% of its equity to private funds. Sovereign wealth funds are limited to one direct investment in a team, but they may also own up to 10% of any private equity funds that invest in a team.
Walter, along with fellow LA Dodgers co-owner Todd Boehly, initially purchased a minority stake in the Lakers in 2021 from Philip Anschutz, which included the right of first refusal on any other Lakers shares. Walter’s other sports holdings include the LA Sparks WNBA franchise, Cadillac’s Formula 1 team, the Billie Jean Cup and the Professional Women’s Hockey League. He is the co-founder and CEO of Guggenheim partners and the CEO of TWG Global.
“Mark Walter is entering into an agreement to acquire additional interests in the NBA’s Los Angeles Lakers, of which he has been a stakeholder since 2021,” a TWG spokesperson said in an email. The company said his sports holdings are separate from TWG Global’s primary portfolio of financial services, insurance, AI and technology.