The Fertitta brothers have officially unveiled their new business venture.
Monday, Frank and Lorenzo Fertitta formally announced the launch of Fertitta Capital, a private equity firm with stated plans to invest in “consumer-facing companies in technology, media and entertainment.” The firm's start-up money comes in the form of $500 million fronted by the brothers, who sold their majority ownership of the Ultimate Fighting Championship this past July in a ground-breaking $4 billion sale, the largest ever for a sports franchise.
"There is tremendous opportunity in the market for a firm that combines patient capital with this unique team of experienced investors and operators," Lorenzo Fertitta said via press release. ”Our long-term view enables us to avoid mandated investment timelines and instead focus exclusively on what really matters -- understanding the needs of the companies we partner with and helping them achieve their operational and financial objectives.”
Fertitta Capital was hardly a well-kept secret, as plans for the firm's initialization and launch were first reported back in July, almost immediately following the Fertittas' sale of the UFC. As expected, former UFC Chief Financial Officer Nakisa Bidarian – who had only just joined the promotion in January 2016 -- will serve as CEO of Fertitta Capital, following his UFC departure late last year. Frank Fertitta will continue to serve as chairman and CEO of Red Rock Resorts, which he and his brother took public last spring, while Lorenzo will serve as an adviser despite not being directly involved in the firm's day-to-day operations.
According to a Wall Street Journal report, in its early stages, Fertitta Capital will focus on strategic investments between $20 and $75 million, per the comments of a spokesperson for the firm. Forbes presently estimates the combined net worth of the Fertittas at $4 billion.