Analysis:Global private equity firms bowled over by Indian cricket league IPL

MUMBAI, Feb 17 : Global private equity investors like KKR and Blackstone have a new investment hotspot in India: cricket.

The Indian Premier League, the world's richest cricket league, counts Bollywood stars, Indian tycoons and spirits maker Diageo among its backers, but is now attracting major private equity firms with the prospect of rapidly rising revenue and profits and massive viewership globally.

The business value of the league, popularly called the IPL, surged to a record $18.5 billion last year, U.S.-based investment bank Houlihan Lokey says.

That's much smaller than America's National Football League (NFL) valued at $227 billion and the National Basketball Association (NBA) worth $165 billion, but on a per-match basis the IPL is now the world's second-most valuable sports league after the NFL.

KKR and Blackstone are eyeing stakes in the winner of last season, Royal Challengers Bengaluru (RCB), two banking sources said. KKR is also reviewing a possible stake in the Rajasthan Royals team, while Swiss-based PE firm Partners Group is considering at least one team for investment, sources said.

It was a blockbuster IPL deal by European private equity firm CVC Capital that triggered the new wave of interest among investors, bankers say. CVC sold a majority stake in the Gujarat Titans, netting a return of more than 350 per cent in dollar terms just four years after acquiring it. The deal valued the team at $900 million.

"India's structural economic growth should continue to support long-term value creation," said Siddharth Patel, a managing partner at CVC Capital.

"Combined with the scarcity of IPL franchises, it is clear why there is such intense investment interest from both industrial groups, family offices and private