Dwyane Wade Among List of Athletes Profiting on $800 Million Cholula Deal

Dwyane Wade is among a list of athletes who will be profiting on McCormick's $800 million acquisition of Cholula hot sauce. Along with Wade, Travis Kelce, Dak Prescott, Victor Oladipo, J.J. Watt, and Ryan Tannehill will see a return of four times their investment in Cholula. 

In 2018, the private equity firm L Catterton bought Cholula for an undisclosed amount, which is when the athletes invested in the company via investment platform Partricof Co. According to Forbes, the athletes have been working with Partricof to get free financial advice under the expectation that they invest roughly $500,000 each year toward private-equity deals. Other deals Patricof has invested in includes Topgolf, luxury reseller The RealReal, and protein-powder brand Orgain.

Patricof partner Daniel Magliocco spoke about the 85 athlete investors working with them, stating, "Athletes as shareholders can add way more strategic value to companies than the traditional endorsement model. From an investment standpoint, there is recognition that there is so much money and so few deals, relatively speaking, that you need an edge that makes your dollar incrementally more valuable than another investor’s." 

Source: Forbes