US private equity firm Dyal Capital Partners is poised to secure a five per cent equity stake in the National Basketball Association's Sacramento Kings, in a deal which would value the team at $1.5bn (€1.27bn).
According to the Wall Street Journal, an official announcement is expected later this week.
The move comes a few weeks after subsidiary Dyal HomeCourt Partners acquired a minority stake in the Phoenix Suns.
Dyal HomeCourt is managed by Dyal Capital Partners, a division of Blue Owl, the leading alternative asset manager with $52.5bn in assets, and is the only private equity fund approved by the NBA to invest in multiple franchises.
Dyal plans to build a portfolio of minority stakes in six different NBA teams, via a $1bn investment, with a goal of eventually doubling that, according to the report.
The Kings are majority owned by by Tibco Software Inc. founder Vivek Ranadivé.