The announcement by former NBA All-Star basketball player David Robinson's that his private equity firm Admiral Capital Group had acquired its first company, Centerplate Inc., is part of a growing trend of former professional athletes finding a new career as dealmakers after their playing days are over.
The reasoning behind their transformation into private equity managing partners are numerous. First off, they have lots of money. Many desire to use their money in a manner that will generate a profit, but that will also make a positive impact on society. And lastly, the star power of these athletes makes them great magnets for attracting capital from institutional investors.
For Robinson, his investing philosophy is rooted in his socially conscious endeavors dating back to his playing days of the 1990s. Robinson invested more than $10 million in a non-profit private school - The Carver Academy - in San Antonio. But, Robinson is just one of a growing handful of former professional athletes, who've become private equity investors:
- Former NBA Hall of Famer Earvin "Magic Johnson is one of the most successful, with his private equity fund Canyon-Johnson Urban fund, which invests in under-served urban areas.
- Former New England Patroits quarterback Drew Bledsoe founded Bledsoe Capital Group, a venture capital and private equity group primarily focused on emerging clean technologies.
- Former San Francisco 49ers quarterback Steve Young was a co-founder of private capital firm Sorenson Capital, which focuses on small-to-middle-market buyouts. He's currently a managing director at Huntsman Gay Global Capital, which was founded by billionaire industrialist Jon M. Huntsman and former Bain Capital executive Robert C. Gay.
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