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Fosun chief shares what he’s hearing from investors as Wolves target part-takeover
It has been a bumpy ride for Wolves under the ownership of Fosun of late, with the club forced to clarify that they are seeking minority investment as opposed to a full takeover.
Speculation that Wolves‘ Chinese benefactors were looking to cash out on their investment at Molineux had been fuelled by successive summers of wholesale player exits.
In turn, the suspicion was that the mass exodus was caused by Wolves’ standing under the Premier League’s Profit and Sustainability Rules (PSR), previously known as Financial Fair Play or FFP.
However, Fosun’s representative at Wolves chairman Jeff Shi says Wolves are in no danger of a PSR breach and subsequent fine or points deduction, nor have they ever come close.
That bodes well for their hopes of securing investment, with Fosun looking for £75m for a minority stake in Wolves and hoping to reinvest the capital in their esports and sportswear portfolio.
Wolves would likely be involved in some way with either project given that they are a flagship brand for Fosun’s esports team and have their kit supplied by Fosun-owned Sudu.
It is therefore interesting to see what those high up at Fosun HQ think about the investment landscape at present, with the company courting a new partner in WV1.
And James Wang, head of Fosun’s asset management division, has shared his insight into exactly that.
Fosun director comments on investment landscape as Wolves seek £75m cash injection
In 2021, Fosun Sports sold an eight percent equity stake to Peak6, a Chicago-based private equity firm.
Private equity investment is an increasing phenomenon within football, and it seems likely that any additional equity investment in Wolves would also come from that market.
Speaking to , Wang said the following about the private equity market and how Fosun are currently attempting to navigate it: “When we’re talking about the PE landscape change, we see that the trend is becoming more and more diverse and, in some cases, more polarised.
“We are seeing more and more firms targeting a specific stage of investment, either focusing on early stage ventures or focusing on late stage.
“For Fosun, the beauty for us is that we take a very unique approach that allows us to capture both sides.
“Early stage, we typically enter from $2-10m in series A and B [funding rounds].
“But at the same time, when the company grows at a later stage, we also utilise out asset management platform as well as the group balance sheet to conduct late stage investment.
“That is a very interesting strategy because that enhances our ability to work with very big firms, some of whom who may have been in our portfolio from an early stage.“
Wang stopped short of namechecking Wolves. He also named the automotive, renewable energy and financial technology sectors as Fosun’s three focus areas. Tellingly, sport was conspicuous by its absence.
However, Fosun’s intimate knowledge of the PE market as one of the biggest corporate institutions in China will serve them well in the search for investment in Wolves.
Fosun’s global-local approach to investment
Wang also outlined what sort of markets Fosun are targeting when it comes to seeking investment in their portfolio companies, such as Wolves.
“At this stage, we see globalisation and localisation as two very important trends,” he said.
“When I say globalisation, we definitely want to go outside China as a Chinese investment firm.
“We want to go into the world’s top PE or VC hubs in the US, Israel and Southeast Asia etc.
“But at the same time we also want to be local. So, actually, in those companies we have local employees in our offices. We want to hire the most talented local people to do business.”
Potential Wolves investors
Even despite their perilous league position under Gary O’Neil with two points from their opening nine Premier League matches, Wolves represent a relatively attractive investment proposition.
| Position | Team | Played MP | Won W | Drawn D | Lost L | For GF | Against GA | Diff GD | Points Pts |
| 14 |  Man UtdManchester United | 9 | 3 | 2 | 4 | 8 | 11 | -3 | 11 |
| 15 |  LeicesterLeicester | 9 | 2 | 3 | 4 | 13 | 17 | -4 | 9 |
| 16 |  EvertonEverton | 9 | 2 | 3 | 4 | 10 | 16 | -6 | 9 |
| 17 |  Crystal PalaceCrystal Palace | 9 | 1 | 3 | 5 | 6 | 11 | -5 | 6 |
| 18 |  IpswichIpswich | 9 | 0 | 4 | 5 | 9 | 20 | -11 | 4 |
| 19 |  WolvesWolves | 9 | 0 | 2 | 7 | 12 | 25 | -13 | 2 |
| 20 |  SouthamptonSouthampton | 9 | 0 | 1 | 8 | 6 | 19 | -13 | 1 |
Speaking exclusively to TBR Football on a previous occasion, football finance expert Kieran Maguire said that Wolves are likely valued at around £500m.
At that price, a £75m investment would get a would-be investor an equity stake of around 15 per cent.
However, the Premier League investment market is busy at present, with several clubs – including very attractive prospects in Tottenham and Brentford – seeking to sell a minority stake.
But Fosun will be optimistic that they can get a good price for a 15 per cent stake, especially if what they are saying about Wolves’ popularity in China, a key overseas commercial market, is true.