Kohl plans to sell Bucks to private equity investors

Special to The Freeman

April 16, 2014

MILWAUKEE – Herb Kohl, the owner of the Milwaukee Bucks, on Wednesday announced he plans to sell the basketball team to two hedge-fund billionaires for $550 million.

Kohl intends to sell the team to private equity investors Marc Lasry and Wesley Edens. Lasry and Edens pledged $100 million toward the development of a new arena, and Kohl pledged an additional $100 million.

The transaction must be approved by the NBA’s board of governors.

Edens is the co-founder of New York-based Fortress Investment Group LLC. The firm has $61.8 billion in assets under management, according to U.S. Securities & Exchange Commission documents.

Lasry is the chairman, CEO and co-founder of Avenue Capital Group. The firm had $13.6 billion in assets under management as of March 31.

In December, Kohl announced he was searching for additional investors to take the franchise in the future. He made a condition of sale that the team would remain in Milwaukee.

Kohl purchased the Bucks for $18 million in 1985 and has owned the team for 29 seasons.