Sports, music and entertainment finance specialist 23 Capital is opening up shop on both coasts in the U.S., recruiting David Pogoda and Mathew Carvajal to lead its effort to ramp up business stateside.
Pogoda will be managing director and head of North America. He joins from Evolution Media Capital, the investment and advisory firm backed by CAA and TPG Growth. Carvajal will be managing director and comes on board after a decade with the entertainment industries group at J.P. Morgan.
23 Capital was founded in 2014 and has advised on more than $2.2 billion in transactions. The London-based firm works across various forms of financing and transactions for sports, media and entertainment firms.
“There is a multi-billion dollar opportunity in the market for strategic credit capital and 23 Capital have quickly grown to fill that gap,” said Pogoda. “I look forward to building on their achievements with a dedicated team focused on opportunities in North America.”
“Global disruption across the sports, music and entertainment sectors is creating exciting and extensive opportunities,” added Carvajal. “Through the development of new financing structures, 23 Capital has proved its ability to innovate alongside its clients.”
23 Capital has done deals in the U.S. but has not had boots on the ground before. Co-founder Stephen Duval told Variety that the company had always planned to set up bases there as it expanded internationally. “Our vision is to be the preeminent capital and solutions provider to the sports, music and entertainment [industries] globally by the end of 2022,” he said. “We didn’t and still don’t feel there is reasonably priced capital [available] that understood the sports, music and entertainment markets.”
Duval said his firm would deploy $15 billion to $20 billion globally in the next five years across sports, media and entertainment, with a big piece of that dedicated to content production. It can provide the capital that will ultimately allow content and rights owners to retain those assets, he said. “If you have cash flow attached to an asset in sports, media, entertainment, we can give you funds against that,” he said.
(Pictured from left: Mathew Carvajal and David Pogoda)