It’s all the time troublesome to estimate the true web price of billionaires, significantly these with far-flung investments headquartered abroad like Joe Tsai and earlier than him, Mikhail Prokhorov. In Prokhorov’s case, NBA auditors reportedly discovered his fortune was nicely past what analysts at Forbes and Bloomberg had recommended of their estimates. The identical is probably going true with Tsai. There’s a 25% disparity between the 2 wealth trackers’ numbers within the estimates of Tsai’s wealth
And it seems that Tsai is transferring into a brand new part of funding, per a Bloomberg report Tuesday by Benjamin Stupples. Stupples means that Tsai’s “household workplace” — his private funding automobile, Blue Pool Capital — is transferring out of U.S. shares and into different belongings, like five-star accommodations, New York actual property and an increasing number of, sports activities and its derivatives, utilizing his NBA staff and his Brooklyn enviornment to stability that danger with stability.
The image that’s offered is that Tsai continues to see the Nets as a giant a part of his long-term portfolio.
In September, Stubbles also reported, Blue Pool, headquartered in Hong Kong, had dumped a lot of its U.S. inventory portfolio. Bloomberg reported again then that Tsai had “ditched holdings in additional than 30 US-listed firms — principally within the tech sector — for the reason that begin of final 12 months. These embody Alphabet Inc., Microsoft Corp. and Twitter Inc., regulatory filings present.” Certainly, it’s a development among the many greatest of particular person buyers, Bloomberg reported.
Its sole U.S. inventory holding then per Stupples was in Blue Owl Capital, a monetary investor (one in every of whose subsidies owns small stakes within the Phoenix Suns and Sacramento Kings, which stirred some controversy last year.) The stake was price a half billion {dollars} in line with the latest company filings.
Instead of the U.S. inventory. Tsai’s funding automobile has gone into extra actual estate-based properties, just like the resort investments and Manhattan actual property in addition to enterprise capital holdings in issues like sports activities, well being care, prescription drugs and health. Bloomberg, with out detailing how a lot Tsai had invested within the firms listed a number of of them…
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The latest investments, Stupples writes, are within the resort area, with Blue Pool buying a giant stake in a portfolio of accommodations in Spain and Portugal specializing in turning historic buildings into five-star properties. Stupples means that Blue Pool owns a majority of the portfolio.
Bloomberg additionally notes Blue Pool’s well-known funding in Manhattan and a lesser recognized one in Lisbon, Portugal’s capital.
The agency paid $188 million in January for a penthouse beforehand owned by Dan Och at 220 Central Park South on New York’s Billionaires Row, simply months after Tsai, 58, acquired two full-floor residences in the identical constructing for about $157.5 million. He additionally established an actual property agency primarily based in Portugal’s capital, Lisbon, with filings itemizing his private handle as being in one in every of Hong Kong’s most unique residential areas.
Then, there’s sports activities properties, the Nets within the NBA, the Liberty within the WNBA, the Lengthy Island Nets within the G League and Barclays Heart in addition to the Las Vegas Desert Canines and San Diego Seals within the Nationwide Lacrosse League, the place he’s additionally principal proprietor.
Sports activities, actually, make up a giant chunk of his private wealth with the Nets and Barclays Heart alone valued at $3.5 billion. As Stupples reviews, the soundness of the Nets funding is important to wealth preservation which Tsai has stated is a precedence for Blue Pool.
“NBA groups usually are not going to lose asset worth,” Tsai said of his basketball funding in a 2020 Bloomberg Businessweek article. “It’s like proudly owning a penthouse residence on Park Avenue.”
In fact, most of Tsai’s wealth is in Alibaba inventory which has tumbled dramatically over the previous 12 months. Based on company data, none of his Alibaba inventory is held by Blue Pool.
