Silver Lake Partners has seen the value of several key holdings decline during the current economic slowdown. About 15% of the portfolio consists of companies in the sports and entertainment industry.

These holdings have taken a substantial hit as they are the center of the economic slowdown.

Let’s examine what is happening at the tech central Venture Capital and Private Equity firm.

Inside the Silver Lake Partners Portfolio

One of the biggest hits is at AMC Entertainment Holdings (NYSE: AMC), a movie theatre company that owns operated approximately 1,000 theatres and 11,000 screens in the United States and internationally.

All of its locations remain closed with no fixed date for reopening. The company is struggling to pay its bills, and bankruptcy may be the only solution for AMC Holdings. Silver Lake had invested $600 million in AMC Entertainment in 2018. It may have to write the investment to zero if the theater operator does file for bankruptcy relief.

Silver Lake has also invested heavily in the sports business, which is also shuttered around the world. The firm owns the City Football Group, which owns soccer teams around the world. The list of teams includes England’s Manchester City and the New York City Football Club of MSL in the United States.

Losses from quarantined schedules could hit $1 billion per team in the English Premier League.

Silver Lake also owns companies that manage sports venues around the world. It owns companies that represent athletes and entrainment personnel. It also works with college athletic departments to raise their profile and earning abilities. All of these are going to come under pressure if the economic shutdown lasts much longer.

The firm also owns 1.9 million shares of Madison Square Garden in New York that owns the legendary arena as well as the New York Knicks NBA team and the New York Rangers NHL franchise. Both teams have had their reasons suspended, and the stock has declined by 20% so far this year.

The write-downs and declines in these businesses are going to have to be revealed to new investors since the fund wants to raise a new $16 billion buyout fund.  The firm has plenty of firepower in its funds. It can easily prop these sports and entertainment companies it owns until the economy reopens and cash flows improve.

Recent: Private Equity Merger: Aksia Buys Out TorreyCove Capital Partners