Famous actors, musicians and athletes do not live only on royalties. Even celebrities with high earnings do not rely on a source of income, but invest to preserve and increase capital. What do celebrities invest in? BCS Express’s editor was discussed.
Rihanna: a unique cosmetic brand
Many people know Barbadian singer and actress Robyn Fenty as Rihanna, but few know that she is a billionaire and the richest girl musician in the world. This status was not brought to her by money from the sale of albums, not by roles in movies and not even by advertising offers. According to Forbes, Rihanna made a fortune of $1.7 billion in the production of cosmetics and clothing.
The American brand Fenty Beauty was launched by Rihanna in 2017 and this year was named one of the best inventions by Time. The feature and at the same time the advantage of the Fenty Beauty brand is that it offers a wide range of shades of skin care products. Half of the cosmetics company belongs to Rihanna herself, and the other part belongs to the French luxury conglomerate LVMH. Most of the rest of the singer’s fortune is a stake in Savage x Fenty, which produces underwear.
Rihanna’s brands are not listed on the stock exchange, but there are celebrities who invest in public companies, which the average investor can join.
DiCaprio: a contribution to the environment
American actor Leonardo DiCaprio invested in the Swedish electric car brand Polestar. The company will appear on the stock exchange in the next six months after merging with SPAC Gores Guggenheim (Nasdaq ticker – GGPI). Polestar Automotive is valued at $20 billion, the new ticker will be PSNY.
Another venture in which the Hollywood actor has invested is represented on the stock exchange, which is the eco-brand Allbirds (Nasdaq ticker BIRD), which produces shoes from pulp and sugar cane. The company’s securities have been trading since the beginning of November – then the share price was $28.89, today it is valued at $14.45.
In addition, the “wolf of Wall Street” has a well-known manufacturer in the treasury of investments of plant-based meat is the company Beyond Meat, whose shares are listed on the SPB Exchange (ticker BYND). Beyond Meat recently announced a major partnership with McDonald’s, and on this news, shares rose by 9%.
In September of this year, Leonardo DiCaprio decided to invest in other alternative meat companies – Aleph startups Farms and Mosa Meat. Both companies grow beef directly from animal cells. Mosa Meat introduced the first burger made from such meat in 2013, and cultured steak and ribeye from Aleph Farms saw the light of day in 2018 and 2021.
Hollywood actor known for his convictions: all investments by Dee Caprio is “eco-investment”:
- Invested $20 million in Suja Life, a company that produces organic cold-pressed juices.
- Invested $57.1 million in the company Rubicon, which develops waste processing technologies.
- He invested $50 million in the Diamond Foundry company, which produces artificial diamonds using solar energy and plasma reactors.
- Invested in fintech company Aspiration with a bias towards ecology, which he became a consultant. The organization offers credit cards that reduce a person’s carbon footprint. Last week it became known that the organization raised $315 million ahead of the closing of the deal with SPAC InterPrivate III Financial Partners (NYSE ticker IPVF). Orlando Bloom, Cindy Crawford and the Footprint Coalition also invest in Aspiration.
- Invested in Princeville Capital investment company. DiCaprio became an adviser to the climate technology fund, which manages $500 million in assets.
David Beckham: eSports and electric cars
English football player David Beckham invested in e-sports organization Guild Esports (traded on the London Stock Exchange LSE under the ticker GILD). The athlete owns a minority stake in it through his company DB Ventures. Beckham’s share is 11.7%. Last September, Guild Esports went public with its IPO, becoming the first publicly traded eSports organization.
The company previously signed a deal with Footwork Productions, which is owned by a soccer player. Under the terms of the deal, Guild Esports will pay the athlete nearly $20 million over five years for the rights to his name and image.
This summer, Beckham invested in Lunaz, a car conversion brand from internal combustion engines to an electric car. The football player bought 10% of the company’s shares. In three years, Lunaz plans to expand into commercial vehicles, including trucks such as garbage trucks.
In addition, David Beckham’s investment list includes:
- £1m investment in startup MyEye. First, the athlete himself became a user m of this streaming program, which attracted a large audience there.
- Managing the group of investors “Miami Beckham United”, which owns the American professional football club “Inter Miami”. Beckham executed a contract with the MLS soccer league, which included an option to purchase its new franchise at a discounted price of $25 million.
Roger Federer: trust in Swiss brands
Swiss tennis player Roger Federer regularly ranks among the world’s richest athletes according to Forbes.
Federer has collaborated with Nike since 1994, but in 2018 parted ways with the brand, changing it to Japan’s Uniqlo and Swiss On running. The tennis player not only became the face of the European company, performing in branded sneakers at tournaments, but also invested in the brand. According to Swiss media estimates, he invested about 54 million dollars. In the summer of this year, On running reported that its revenue for 2020 increased by 86% (up to $343 million), and for the first time in its history, the company had a net profit of $4 million. The famous athlete owns 3% of the company.
The company went public in mid-September at $37.75 per share, and in two months the value rose to $51.45. On running (NYSE ticker – ONON) has raised about $900 million, and the total capitalization is about $11 billion. This means that Roger Federer’s share is about $300 million.
The famous tennis player also invests in a Swiss banking company Credit Suisse.
LeBron James: “he has a money mind and that’s why he gets good money”
“People in LeBron’s position are pulled in different directions, and they can often make the wrong decisions. He doesn’t lose his head, and it’s not easy,” said Warren Buffett about the American basketball player LeBron James.
In 2008, the basketball player agreed to promote Beats headphones in exchange for a 1% share of the company. Later, the company was bought by Apple, and LeBron received $30 million – $26 million in cash and $4 million in the form of “apple” shares.
Together with partners, James invested in the Blaze Pizza chain – he invested $1 million. Later, becoming a franchisee of establishments, the athlete opened restaurants. According to ESPN, he owns 10% of the shares, the share is estimated at $35-40 million.
Like many sports investors, LeBron James supports his industry. He invested $6.5 million and bought 2% of the shares of the Liverpool football club. Those were not the best times for the club – for the first time in many years, the players did not qualify for the European Cup. Since then, 10 years have passed, during which “Liverpool” became the champion of England, the Champions League and the UEFA Super Cup. And James’s share exceeded $80 million.
This year, the basketball star, together with his partner, became a co-owner of the Fenway Sports Group corporation – it includes Liverpool and the Boston Red Sox baseball club. The value of the parent company is $7.35 billion.
LeBron James became the first billionaire player in the National Basketball Association. The athlete was included in the list of “100 most influential people” according to Time magazine.
Mark Wahlberg: investing in sports
American actor Mark Wahlberg became a minority shareholder of the international chain of fitness clubs F45 Training in 2019. His passion for fitness is known to many, so the actor tested the training method on himself.
F45 Training appeared in Australia. Club classes are unique in that they only last 45 minutes. At the same time, one functional training class combines several fitness styles. MGIW, 26% owned by Wahlberg, became one of F45’s main investors.
The fitness chain went public in July, and since then shares have fallen from $16 to $10.71. However, analysts note that the network is developing rapidly, the number of studios is increasing, and this is strengthening the competitive position of the brand. F45 shares are traded on the NYSE under the ticker FXLV.
In addition to the fitness network, Wahlberg has invested in the UFC, a mixed martial arts organization. He owns shares worth $45 million. In 2020, the Hollywood actor became a co-owner of a shoe company.
