Sixth Street's approach to sports investing is the same as Sixth Street's approach to everything. It's an investor first mindset, and it's a partner first mindset.
Sports, in addition to being a very good investment thematic, brings people together to be able to put our investment thesis and build something with our relationships, our capital, our knowledge. That's pretty exciting.
Our architecture at Sixth Street and the way that we go to market is different than most firms. We bring the full set of Sixth Street tools to bear on any given opportunity, whether it's sector expertise or knowledge of different parts of the capital structure.
We look at opportunities ranging from credit opportunities, all the way to control equity opportunities and everything in between.
The opportunity for Sixth Street in sports is really about two things. It's about teams and it's about services. For the teams, they need structured capital that allows them to sort of tap the right cost of capital without diluting controlling shareholders. The other need that they have is around capex. That's the sort of layered finance where Sixth Street really excels.
The sports ecosystem has hallmarks of a lot of things that we really like at Sixth Street. Businesses that are generally very high quality, have high barriers to entry, have reoccurring revenue characteristics, and are also underpinned by loyal fanatic customers.
There's really no space like it in the world where brand loyalty and that consumer loyalty is as strong.
The other big area of sports activity where we can be really relevant is around the services ecosystem. Sports is the best form of live content that you're gonna find. Being able to finance that overall ecosystem is important to the people who own those facilities and important to the consumers who use those venues.
We shine our brightest when we're partnering with folks who need creative capital that's nimble and thoughtful, and we have a lot of experience in delivering solutions that are bespoke.
The institutionalization of capital into sports has created real asset appreciation. These assets are growing because they're getting more complex, and that is all rippling down to the value of these teams and the businesses that service them.
It's about understanding each opportunity uniquely. If you look at what we've done already, we've partnered with Real Madrid and Barcelona and San Antonio Spurs and the NWSL, but we're not a private equity firm that bought a women's soccer team. We're a private investment firm that bought the right to build a women's soccer team from scratch.
