Investment Landscape within Sports, Media and Entertainment

Investing involves risk including the loss of principal. An investment in Sports Media Entertainment entails a significant degree of risk, and, therefore, should be undertaken only by investors capable of evaluating the risks of that investment and bearing the risks it presents. General risks include, but are not limited to, a lack of liquidity; a high degree of regulation within the sports leagues, teams and related companies; additional authority of certain regulatory bodies in respect to operations; personal investments or ownership interests from senior management; success of sports teams; cancellation and disruption of events; portfolio concentration and lack of industry diversification; use of leverage; need to deploy capital quickly; no market for units and restrictions on transfers; potential effects of the repurchase program; potential difference in valuations of underlying assets; errors in NAV and that the strategy(ies) have a limited operating history. These are not the only risks and potential investors are encouraged to refer to the private placement memorandum of the corresponding strategy prior to investing.

There are inherent differences between public and private equity. On the whole, public equity is more liquid, represents direct ownership in a company, has more stringent reporting, and has historically had higher volatility and lower fees. Private equity has historically had lower volatility relative to public equity, but operates under less stringent reporting requirements, is generally more illiquid and designed for more sophisticated investors with a longer time horizon. Indexes designed to track the public markets are different from private equity in that data is derived from trade data and reporting requirements. Indexes are not available for direct investment, do not include the fees, expenses or reinvestment of any investments. 

AccessAres articles are for educational purposes only. The views contained in these articles may change and should not be relied upon as, nor are they intended to be used as, investment advice or a recommendation to buy, sell, or hold any security, investment strategy, or market sector. AccessAres undertakes no obligation to update the materials contained on this website.

AccessAres is the thought-leadership and educational division of Ares Wealth Management Solutions. The materials distributed by AccessAres are for informational purposes only and do not constitute investment advice or a recommendation to buy, sell or hold any security, investment strategy or market sector. Ares Wealth Management Solutions is a global brand of Ares Management Corporation.

Past performance is not an indicator of future results.

This information is for informational purposes only and is neither an offer to sell nor a solicitation to purchase any related securities. Investing in private markets investments involves a high degree of risk including, but not limited to, risk of substantial loss of principal. Direct investments in private companies and investments involve a high degree of business and financial risk that can result in substantial losses.

Financial advisors must carefully consider the risks and other suitability details in determining appropriate investments for their individual clients’ portfolios.

In Canada, this document (this “document”) is directed only to Canadian residents that are “accredited investors” as defined under section 1.1 of National Instrument 45-106 Prospectus Exemptions and “permitted clients” as defined under section 1.1 of National Instrument 31-103 Registration Requirements, Exemptions and Ongoing Registrant Obligations. This document is not, and under no circumstance is to be construed as an offering memorandum, an advertisement or a public offering of any securities in any province or territory of Canada (each, a “Canadian Jurisdiction”). Under no circumstances is this document to be construed as an offer to sell securities or the provision of advice in relation to any securities. Any offer or sale of any securities described in this document will be made pursuant to the definitive private placement documents for the securities, which do not include this document. In addition, any offer or sale of, or advice related to, any securities described in this document will be made only by a dealer or adviser registered or relying on an exemption from registration in the applicable Canadian Jurisdiction.  No Canadian securities regulatory authority has reviewed or in any way passed upon the information contained in this document or the merits of any securities described in this document, and any representation to the contrary is an offence.

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Ares Wealth Management Solutions is a global brand of Ares Management Corporation.