Liverpool's Game-Changing Move: US Private Equity Firm Acquires Minority Stake from Fenway Sports Group

Liverpool's Game-Changing Move: US Private Equity Firm Acquires Minority Stake from Fenway Sports Group

Liverpool's Fenway Sports Group has sold a minority stake to Dynasty Equity, a US private equity firm The funds raised won't be used for transfers, as the Reds remain steadfastly not for sale FSG purchased the club for £300m back in 2010

Liverpool’s owners have sold a small stake in the club for up to €200m.

The money raised will be used to pay down debt and help finance capital expenditure.

Liverpool, similar to other clubs, experienced the impact of the pandemic. As a result, they have made substantial investments in player transfers, revitalizing Anfield, constructing a new training facility, and repurchasing their previous training ground. The minority stake of the club has been acquired by Dynasty Equity, a US private equity firm, for a sum ranging between €100m and €200m. However, their role will be that of passive investors.

Liverpool's Game-Changing Move: US Private Equity Firm Acquires Minority Stake from Fenway Sports Group

The funds generated will be allocated towards alleviating the financial obligations of the club, aiming to diminish its debt burden. These resources will not be utilized for financing forthcoming transfers. According to Liverpool's most recent financial statements until June 2022, the club's net debt amounted to £71m.

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Fenway Sports Group bought Liverpool in 2010 for £300m

Liverpool is not currently up for sale and will continue to remain so. In November of last year, Morgan Stanley and Goldman Sachs were hired to investigate potential investment opportunities.

The investment from Dynasty Equity is not intended as a means to sell the club. The owners of Liverpool, Fenway Sports Group, are fully dedicated to maintaining ownership and running the club.

Liverpool engaged in discussions with several investment groups, but it was the proposition put forth by Dynasty Equity that resonated with them as the ideal choice.

Established in the previous year by asset manager Jonathan Nelson and investment banker Don Cornwell, Dynasty Equity aims to acquire minority shares in various clubs across the globe. Their inaugural investment transpired with the procurement of a minority stake in Liverpool.

FSG purchased Liverpool in 2010 for £300m, and according to Forbes, it currently holds a value exceeding £4bn. FSG's president, Mike Gordon, emphasized our unwavering dedication to Liverpool's success over the long term. We have consistently expressed our intention to seek suitable investment partnerships that will uphold the club's financial stability and facilitate future growth.

"We are excited to enhance our longstanding partnership with Dynasty as we strive to enhance the financial standing of the club and pursue our goals for sustained success both on and off the field."

Jonathan Nelson, the executive chairman of Dynasty, expressed his admiration for the strategic partnership with FSG and their commitment to preserving the impressive legacy of Liverpool. This collaboration is founded on mutual respect and strong relationships between our respective teams.