Brooklyn Nets star Kevin Durant starts $200 million SPAC

Brooklyn Nets star Kevin Durant starts $200 million SPAC

Most sports activities followers know Kevin Durant as an excellent basketball participant for the Brooklyn Nets, however the two-time NBA championship winner can also be on a distinct workforce — off the court docket. 

Durant and his longtime supervisor Wealthy Kleiman have launched a special-purpose acquisition firm, or SPAC, in keeping with documents filed Wednesday with the Securities and Trade Fee. Within the submitting, Durant is listed as co-CEO for Infinite Acquisition, which plans to go public by merging with an organization within the sports activities, well being, meals tech, ecommerce or cryptocurrency sector. 

The SPAC intends to go public beneath the ticker image “NFNT” and is searching for as much as $200 million in investments from new shareholders. Durant and Kleiman did not title a selected entity they’re concentrating on for a merger. 

“We have not selected any business combination target and we have not, nor has anyone on our behalf, initiated any substantive discussions, directly or indirectly, with any business combination target,” Durant and Kleiman mentioned within the submitting. 

Durant joins a rising record of well-known athletes who’ve began or invested in a SPAC, including Stephen Curry, Shaquille O’Neal and Alex Rodriguez. SPACs, often known as “blank-check” firms as a result of they go public earlier than discovering a non-public firm with which to merge, surged in reputation in 2020, drawing endorsements from celebrities and buyers alike. 

Exterior the sports activities world, shares of former president Donald Trump’s new social media firm surged greater than 1,200% after it merged with blank-check firm Digital World Acquisition final month.

But whereas SPACs have attracted billions in capital, they have not paid off for many buyers, in keeping with Goldman Sachs. Total returns for the acquisition automobiles have been “below par,” analysts with the funding financial institution mentioned in a latest report. 

From ball to enterprise

Basketball could also be their old flame, however athletes like Durant, O’Neal and quite a few others usually dip their toes into the enterprise world throughout their skilled sports activities careers or after their taking part in days are over. 

For instance, former Detroit Piston Chauncey Billups owns more than a dozen Wendy’s areas, whereas Los Angeles Laker Carmelo Anthony has his personal funding agency, Melo7 Tech Companions. Los Angeles Laker LeBron James owns greater than a dozen Blaze pizza areas, a manufacturing firm and minority possession stakes in a number of sports activities groups.

In the meantime, the late Kobe Bryant invested in BodyArmor sports activities drinks quickly after his NBA retirement. His property lately earned a reported $400 million after Coca-Cola this week agreed to purchase BodyArmor for $5.6 billion. 

Durant has created a burgeoning enterprise presence in his personal proper, notably as an investor in cryptocurrency platform Coinbase and in hashish firms.

“Durant has become a well-respected investor and businessman with a diverse portfolio of over 70 venture investments across a variety of industries including sports technology, media, gaming, health/wellness and collectibles,” the SEC submitting said. 

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