After a process lasting months, Chelsea continues to move closer to entering a new era with new owners at Stamford Bridge. Roman Abramovich's 19 years in charge of the club are nearing their end with the news that a group led by Todd Boehly now has an agreement in place to acquire the club, provided the necessary regulatory approvals are granted.
While Boehly was the figure present for Chelsea's draw with Wolves and has been the spearhead of the bid, he is far from the only person involved in the consortium. The statement released in the early hours of Saturday morning acknowledges others helping to lead the investment: Clearlake Capital, Mark Walter and Hansjoerg Wyss.
Clearlake's investment company has perhaps caused the most consternation in the last seven days. As it emerged, they will likely hold the largest shareholding in the consortium despite Boehly's profile in the move. It was a set-up that Sir Jim Ratcliffe hoped to exploit in his interview concerning Chelsea's bidding process.
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"I don't know Todd, and I don't know his group," Ratcliffe said. "What I do know is I spent quite a few years of my life working in the world of venture capital and private equity. Your focus is always on how do I invest and make that money grow, and it's typically a five-year time horizon - and their main funder is a private equity and venture capital."
So, how valid are those concerns, and who are Clearlake Capital? football.london takes a look below:
Who are Clearlake Capital?
What they say: "Founded in 2006, Clearlake Capital Group, L.P. is an investment firm operating integrated businesses across private equity, credit and other related strategies. With a sector-focused approach, the firm seeks to partner with experienced management teams by providing patient, long term capital to dynamic businesses that can benefit from Clearlake's operational improvement approach, O.P.S.® The firm's core target sectors are technology, industrials, and consumer. Clearlake currently has over $72 billion of assets under management, and its senior investment principals have led or co-led over 300 investments. The firm is headquartered in Santa Monica, CA with affiliates in Dallas, TX, London, UK and Dublin, Ireland."
Clearlake are an American company led by Jose E. Feliciano and Behdad Egbahli, with the latter in particular described as a big football fan. Eghbali, in particular, is described as being a 'hands on' figure, but despite the anticipation that Clearlake will hold a stage of at least 50%, it is still expected that Boehly will assume day to day control.
The Financial Times does report that 'Clearlake finances about two-thirds of the purchase price of its takeovers using debt, say bankers who have worked with the group'.
The company manages £60 billion in assets and has taken £20 billion in new assets in the last 12 months, while Feliciano and Egbahli are both said to be worth £2.7 billion respectively.
Do they have other investments in sports teams?
Not at the moment, the group has stayed very much in the sectors they specialise within. Their portfolio is split into Software & Technology, Energy and Industrials and Food & Consumer Services. Previous investments have included Ashley Stewart, Jacuzzi and Primesport.
Feliciano and Egbahli have, however, been linked with purchasing the Denver Broncos, albeit with their personal wealth rather than via Clearlake. Boehly has also been a name rumoured to be on the shortlist for purchasing the NFL side. It's uncertain if the interest will remain following the progress of the Chelsea bid.
The Clearlake duo have also previously looked to acquire a significant portion of the Washington Commanders that would have been worth $900 million.
Private equity investment companies already have a presence in the Premier League. Silverlake purchased a 10% stake in Manchester City with £500 million financings, while RedBird Capital made a significant investment in Fenway Sports Group, the owners of Liverpool. Wes Edens, the co-founder of Fortress, is the owner of Aston Villa.
How did they become involved in the bid?
Clearlake developed a relationship with Boehly when involved in a bidding war to buy debt manager CBAM in the early stages of 2022. The group was ultimately beaten in a bidding war, but Feliciano and Eghbali are thought to have grown close to Boehly, who founded Eldridge Industries, which owned CBAM.
Are safeguards already in place?
While there is logic to the concerns Ratcliffe raised with investment groups hoping for a return through sale at some point, there is an emphasis in Clearlake on 'long-term relationships', and there is also the possibility of new financial partners being found. As the company's website states, they look to use 'long-term strategic partnerships with management to transform and grow companies'.
However, reports suggest several conditions have been placed on the transfer of ownership to ensure consistency in the Blues' future. Ahead of the agreement to acquire the club, it was said clauses would include the sale of shares being now allowed until 2032. Dividends and management fees are unable to be paid for a similar period, and limits on the amount of debt that can be taken on.
