In a new investment round, sports merchandise giant Fanatics Inc. has raised roughly $700 million, most of it from parties that had not previously invested in the company. According to various accounts in the business news media, among those new investors are private-equity firm Clearlake Capital Group LP, which led the round, and investment and merchant-banking firm LionTree LLC.
The proceeds from the investment, which comes in the form of common stock, will reportedly be set aside for in-depth strategic M&A and won’t be used to fund day-to-day operations. The goal is to help Fanatics grow across its divisions, including the soon-to-be launched sports-betting and gaming business.
The Wall Street Journal reports that the new round of funding brings Fanatics’ valuation to $31 billion. In March 2022, Fanatics secured a $27 billion valuation after raising $1.5 billion in new capital.
