Thrive Capital has bought a small stake in the San Francisco Giants through a new holding company called Thrive Eternal.

Thrive Eternal is a permanent holding company that will focus on assets with “qualities that cannot be replicated by technology,” founder Josh Kushner wrote in a post on X. 

"Thrive Eternal is built on the belief that the most enduring of these assets share common characteristics: they benefit from long-term stewardship, they compound through cultural resonance, and they are enhanced by technology rather than displaced by it," Kushner wrote.

The vehicle is funded by existing investors in Thrive's venture capital and growth equity funds. 

Details on the transaction were not disclosed, although Axios reported that it is for a sub-10% stake and includes both primary and secondary purchases. 

Sixth Street Partners and Arctos, two of the club's existing institutional owners, have kept their stake in the franchise.The deal remains subject to MLB approval.

Big Names Join The Strategy

Last week, it was reported that former Disney (NYSE:DIS) CEO Bob Iger rejoined Thrive Capital as an advisor, a month after handing the reins to successor Josh D'Amaro.

Iger will be "deeply involved" in the MLB stake as well as investments in other pro sports franchises, live event venues, and festivals, Axios stated.

Axios noted this looks like a strategic move by Thrive to build up its assets, placing it alongside General Catalyst and Andreessen Horowitz on the IPO watchlist.

Sports Investing Goes Mainstream

Private equity and venture capital in sports has been an accelerating investment trend, where firms are looking to acquire minority or majority stakes in professional teams, leagues and businesses, as company valuations grow. Major leagues such as the NFL, NBA, MLB, and NHL now permit private equity investment into its franchises. 

According to a report from Meketa, the global sports market reached $463 billion in revenue in 2024. It is projected to accelerate to just over $600 billion in revenue by 2028, and to nearly $863 billion by 2033. 

Drivers of this growth include “the rising value of media rights deals, increased fan engagement, the expansion of sponsorship and merchandising opportunities, and growth in sports-adjacent businesses,” the report stated.

Other private equity and venture capital firms have purchased sports franchises recently.

Last month, a consortium comprising Blackstone (NYSE:BX), Bolt Ventures, Aditya Birla Group, and The Times of India Group agreed to acquire the Royal Challengers Bengaluru (RCB) cricket franchise. 

Meanwhile, Ares Management Corp., Apollo Global Management(NYSE:APO) and Sixth Street Partners are reportedly having early-stage conversations regarding the National Basketball Association’s (NBA) European expansion.

Earlier this year, KKR & Co. (NYSE:KKR) entered into a definitive agreement to acquire Arctos Partners, an institutional investor in professional sports franchise stakes.

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