Buyout financier Ares Management Corp has offered financial backing to parties interested in undertaking a takeover of Manchester United.
Ares Management joins hedge fund operators Elliot Management in offering finance to potential investors in the bidding battle to buy United.
According to Reuters, alongside Ares, Oaktree Capital has also offered financing to bidders.
Reuters reports, “Buyout financier Ares Management Corp (ARES.N) has been offering funds to support a takeover of Manchester United (MANU.N), three sources familiar with the matter told Reuters.
“Ares, which oversees roughly $350 billion in assets, has offered funds in the form of structured equity to at least one bidder, one of the sources said. However, this bidder turned down the funding because the terms were unattractive, he said.
“Structured equity refers to a form of funding 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 Ares has tried to get involved in the takeover of an English football club.
Reuters relays 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 later abandoned its endeavours to buy Southampton.
Ares was also involved in two failed bids to take over the reins at Stamford Bridge from Roman Abramovich.
Eventually, Todd Boehly and Clearlake’s proposal was successful.
As per Reuters, “Ares recently raised $3.7 billion for a dedicated sports fund with a mandate to invest in leagues and teams.”
It’s unclear whether Ares will tap into this fund in its attempts to get involved in a buy-out of United. This fund has already been used in pumping investment money into Atletico Madrid and Inter Miami.