Joshua Kushner's Thrive moves into pro sports investing
Add Axios as your preferred source to
see more of our stories on Google.
Illustration: Annelise Capossela/Axios
Joshua Kushner's Thrive is now investing in pro sports, agreeing to buy a small stake in the San Francisco Giants.
- It's being done via a new holding company called Thrive Eternal, which will focus on assets with "qualities that cannot be replicated by technology."
Why it matters: This feels like an asset-gathering gambit by Thrive, which now joins the same IPO watchlist as General Catalyst and Andreessen Horowitz.
- Pro sports is a great business, but doesn't really move the ROI needle for a firm with big stakes in companies like OpenAI and Stripe.
Zoom in: Thrive isn't disclosing details of the Giants deal, which remains subject to MLB approval, but word is that it's for a sub-10% stake and includes both primary and secondary purchases.
- Neither of the club's two existing institutional owners — Arctos and Sixth Street Partners — sold.
The big picture: Thrive Eternal is a permanent capital vehicle initially funded by many existing investors in Thrive Capital's venture capital and growth equity funds.
- No word yet if Thrive Eternal initially raised a blind capital pool or is operating more like a fundless sponsor. But, like most evergreen structures, expect that investors will have liquidity mechanisms.
- Expect it not only to buy into pro sports franchises, but also things like iconic live event venues and festivals. Former Disney CEO Bob Iger, who recently rejoined Thrive as an advisor, will be deeply involved.
Yes, but: Thrive Eternal may not have access to all pro sports franchises.
- For starters, the NFL isn't currently accepting applications for its group of pre-approved franchises.
- Second, Kushner has a small personal investment in the Miami Heat, which may preclude Thrive Eternal from buying into other NBA clubs. A league spokesperson didn't respond to a request for comment.
The bottom line: The key to taking a private investment firm public is to diversify the business, preferably with less volatile assets than venture capital or private equity.
- Kushner already formed Thrive Holdings to apply AI to legacy services companies. Now he's building the third leg of his IPO optionality stool.
