Mergers & Acquisitions names the 2021 Rising Stars of Private Equity, including ZMC’s Jason Sporer.
Banner Year
When Sporer joined ZMC as an associate in 2011, “his analytical horsepower and rigor were immediately evident,” partner Sheila Dharmarajan said. He took “that extra step to think about the underlying question that needed to be answered or investment issue that needed to be understood and would create tailored analysis to get to the bottom of the answer.” The investment firm founded by former music exec Strauss Zelnick promoted Sporer to principal in 2021, after he led the firm’s sole investment of the year (so far).
Comedy Gold
The target was Chicago’s legendary comedy club The Second City, which launched the careers of many well-known comedians over the years but faced significant challenges under Covid. The club’s enviable alumni list includes: Aidy Bryant, Steve Carell, Stephen Colbert, Tina Fey, Keegan-Michael Key, Eugene Levy, Julia Louis-Dreyfus, Jane Lynch, Suzy Nakamura, Catherine O’Hara, Chris Redd and many others.
“As a live entertainment product, The Second City was severely impacted by the pandemic, but the management team did an amazing job pivoting to providing new digital offerings that have never existed before,” Sporer said. “Long term, we believe this crisis has created opportunities for The Second City to continue to offer those digital products when their theaters reopen.”
“At the time of purchase, the company had a significant downturn in revenue because the live theater shows were halted,” Dharmarajan explained. “It would have been easy (and understandable) to pass on the deal, given the uncertainty around reopening at the time and the company’s financial profile. Jason, however, was undeterred and showed prescient investment judgment. He was able to look beyond the current issues the company was facing and focused on the underlying investment merits of the company – iconic brand name and ability to monetize existing library of content.”
Diversity was another challenge. The company “faced significant DEI-related issues under the prior ownership,” Dharmarajan said. “Jason ensured that the matters were treated in the utmost thorough manner and took significant time to address the issues not only internally, but also with the existing management team. Jason assessed the situation carefully, and more importantly, is leading the effort to put the proper framework in place at the company going forward.”
