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Takeover financier Ares Management Corp has offered financial backing to parties interested in taking control of Manchester United.
Ares Management teams up with hedge fund operators Elliot Management to offer financing to potential investors in the bidding battle to buy United.
According to Reuters, along with Ares, Oaktree Capital has also offered financing to bidders.
Reuters reports: “Buying financier Ares Management Corp (ARES.N) has been offering funds to back its takeover of Manchester United (MANU.N), three sources familiar with the matter told Reuters.
“Ares, which oversees approximately $350 billion in assets, has offered funds in the form of structured capital to at least one bidder, one of the sources said. However, this bidder rejected the financing because the terms were not attractive, she said.
“Structured capital refers to a form of financing that typically sits between equity and debt in a company’s capital stack and comes with regular payments. A spokesperson for Ares declined to comment.
This is not the first time that Ares has tried to get involved in the acquisition of an English football club.
Reuters reports that in 2020, Ares was backing Miami-based soccer investor Kapital Football Group in its efforts to acquire a club in the Premier League.
Kapital then abandoned its efforts to buy Southampton.
Ares was also involved in two unsuccessful bids to take the reins at Stamford Bridge from Roman Abramovich.
Ultimately, Todd Boehly and Clearlake’s proposal was successful.
According to Reuters, “Ares recently raised $3.7 billion for a dedicated sports fund mandated to invest in leagues and teams.”
It’s unclear if Ares will tap into this fund in its attempts to get involved in the United purchase. This fund has already been used to inject investment money into Atlético de Madrid and Inter Miami.
