Apollo has struck a $2.6bn (£1.9bn) financing agreement with the owners of the New York Yankees, as alternative asset managers become increasingly involved in the sports lending market.

The financing agreement between Apollo’s sports investment arm, Apollo Sports Capital, and Yankee Global Enterprises (YGE) is a mix of credit and equity, the global asset manager said.

The $2.6bn will support the growth of the Yankees franchise as well as the refinancing of existing debt, the firm added.

Read more: Apollo posts record quarterly earnings as AUM tops $1tn

The news comes as alternative asset managers are increasingly seeking greater exposure to leagues and franchises across world sports. Other alternative asset managers, such as Ares Management, have also invested in football clubs including Chelsea FC.

In Europe, more than a third of clubs in the continent’s top five football leagues are now understood to have private equity, venture capital or private debt backing, highlighting the growing interest in sports investment within private markets firms.

Read more: Private credit lenders step up to provide financing to European football clubs

As part of the transaction, Apollo Sports Capital chief executive Al Tylis will join YGE’s board, which will expand by one seat.

YGE is controlled by businessman Hal Steinbrenner and members of his family. The group has also invested in Italian football club AC Milan. The Steinbrenner family will retain full control of the Yankees following the transaction, Apollo said.

“The New York Yankees are one of the most iconic franchises in sports, defined by a legacy of greatness,” said Tylis. “It is a privilege for Apollo Sports Capital to partner with the Yankees, and we are grateful to the Steinbrenner family for their trust.”

The transaction is expected to close imminently.

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