Raine Group is becoming a member of the SPAC pack.
The funding financial institution that has been a participant in media and leisure for the previous dozen years has teamed with Marquee Sports, proprietor of the Chicago Cubs regional sports activities community, in a particular function acquisition firm that goals to amass companies valued at $1 billion or extra.
Marquee Raine Acquisition Corp. raised $373.8 million final month, giving it a struggle chest that needs to be spent inside two years or the cash is returned to shareholders. Though Marquee is carefully tied to the Cubs and the sports activities world, Marquee Raine is searching for ripe prospects in leisure. One space of curiosity is reside occasions, because the group behind Marquee Raine has expertise in refurbishing Chicago’s landmark Wrigley Subject.
“We’re a lot broader than sports activities,” says Brett Varsov, associate and head of M&A at Raine Group and co-CEO of Marquee Raine Acquisition Corp.
Regardless of hypothesis on the contrary, Marquee Raine isn’t within the hunt for different sports activities groups per se, in response to Crane Kenney, president of enterprise operations for the Cubs and co-CEO of Marquee Raine.
“What we’re is all the economics round reside occasions — music, ticket rights, sports activities rights for pay TV — these are a few of the areas that we’re trying to put money into. As we acquired achieved with our work at Wrigley Subject, we appeared round at our group and began to consider what else we might do exterior of baseball.”
For positive, Marquee Raine’s pitch to buyers leans on the administration capabilities that each companions convey to the SPAC. The Marquee group has a profitable monitor document in rehabilitating the Cubs franchise. Raine has about 150 staff who’re centered on pouncing on alternatives in a fast-changing market. Raine and Marquee executives have labored collectively for years on tasks, including to the consolation stage between the businesses.
“At our core is deep business experience and relationships throughout all the TMT sectors,” says Varsov. “What we do is construct companies round that experience.”
The rising recognition of SPACs, that are a substitute for IPOs for corporations to boost cash from public markets, opens a brand new door for Raine, whose investments have included stakes in Think about Leisure and Vice.
Raine up to now has made investments of $50 million-$100 million in corporations via its development fairness fund. However the SPAC is designed to permit it to extend bets on corporations with the flexibility to function as public entities. Raine’s group has a great sense of the place the market is headed via its advisory arm, in response to Raine associate Erik Hodge.
“We’ve achieved quite a lot of enterprise within the digital media/leisure/sports activities ecosystem,” says Hodge. “These sectors might be in focus.”