Kestelman sells 51% of '$35 million' JackJumpers

• Brisbane-based Altor Capital to acquire majority stake in JackJumpers
• Two-year transition plan with full ownership transfer by 2027
• Sale proceeds to boost NBL and Wilkinsons Point development

Larry Kestelman has sold 51% the NBL24 champion Tasmania JackJumpers.

The NBL owner said the team had been sold to Brisbane private equity firm Altor Capital through its "emerging growth fund" on Friday night after three months of negotiations.

ESPN is reporting the JackJumpers were sold for $35 million.

‍ESPN further reported: "The JackJumpers' substantial valuation comes within 12 months of both the Perth Wildcats and Melbourne United being valued at $40 million."

"This is an exciting day for the NBL, the Tasmania JackJumpers and basketball in Tasmania," Kestelman said.

"Together with the Tasmanian government and the community, we built this incredible club from the ground up in only five years and in that time the JackJumpers have become an integral part of the state and the NBL.

"They have enjoyed remarkable success on and off the court and brought so much joy to so many.

"From the outset the plan was to build a legacy piece for the state and something the community will have to support and celebrate for decades to come."

Altor Capital has secured a 51% stake and plans to take full ownership within two years.

"I am immensely proud of what we have been able to create here for Tasmania, basketball fans and the wider community in such a short period of time and it’s with great joy and pride, that I will hand over the club to its new owners, Altor Capital," Kestelman added.

Altor Capital Chief Investment Officer Ben Harrison said he supported the JackJumpers existing structure and committed to preserving the JackJumpers' culture. No immediate alterations to the JackJumpers' business model or staffing structure are expected.

"We are honoured to be entrusted with the next chapter of the Tasmania JackJumpers and will be focused on continuing the team’s incredible momentum," Harrison said.

"We intend to grow the JackJumpers’ impact on the State and in the community even further.

"We will also ensure fans continue to have the best entertainment experience in the country, while strengthening the club’s infrastructure, and building on the incredible foundations that have been laid since 2020.

"We will continue to support the JackJumpers Advisory Board and Executive team in their desire to secure a WNBL team for the state of Tasmania.”

"We sincerely thank the JackJumpers' supporters for their unwavering support. Your passion and dedication are what make this club so special, and we are committed to building a future you will continue to be proud of.

"We guarantee fans they will continue to be at the heart of everything we do.

"This next phase of the JackJumpers' journey will be one of continual strive for excellence, and we can't wait to get started."

Part of the new ownerships focus is the expansion of MyState Bank Arena to increase seating capacity and address the ongoing demand for access to games following the team’s  run of sell-outs. A significant portion of the sale will be reinvested into the NBL, its clubs and the Wilkinsons Point precinct development in Hobart, the location of the JackJumpers' MyState Arena.

Kestelman revealed he wanted the club to be Tasmanian owned but it didn't eventuate.

"The number one driver was to make sure we found the right person, and I can openly say I could have sold the club for more, substantially more, to other buyers who I wasn't comfortable with," Kestelman told the ABC.

"My first preference was to find a Tasmanian consortium, and I have to say I wasn't necessarily successful in that. I tried really hard,"  he said.

"Some conversations finished very quickly, some took a little longer, but this is the one I felt very comfortable about; just their philosophy and view and how they want to tackle the club."

It has been Kestelman's intention to sell the club since its launch in 2021 as an expansion team.

The sale, which began in last year, garnered interest from about 30 investors and consortiums worldwide.

Kestelman said finding the right owner was more important than maximising profit, revealing he declined "substantially more" money from other potential buyers.

"[Money] was never actually my number one driver," he said.

The at times controversial project has expanded from a $150 million plan to a $500 million vision to including a family holiday park, hotel, convention centre, and retail.

JackJumpers’ CEO Christine Finnegan added: “This ownership transition is a very important part of the JackJumpers journey from start-up to a maturing business which has quickly demonstrated its ability to compete with the best sporting clubs in the country on and off the court.

"This new ownership structure provides us with an important platform to continue to build on the club’s incredible successes as an independent licence holder in the NBL, and I am proud we have been able to demonstrate our investment value in only our 5th year in existence.

"This announcement is about a strong future for the JackJumpers as an independent body, and I would like to thank coach Scott Roth and all the current and previous staff and players that have helped build the club from its humble beginnings for this new and exciting phase.

"While celebrating and acknowledging this milestone, I want to ensure everyone understands it is business as usual for the club on and off the court as we focus on its future success. Our focus is on more community engagement and ensuring basketball continues to thrive in this great State."

Kestleman stressed the Tasmania Jackjumpers sale was future-focused to continue to build Tasmania as an NBL stronghold.

"The club is for all of Tasmania. It's not a Hobart or Launceston or Devonport team, it's a club for everyone in Tasmania," Kestelman said.

What is Altor Capital

Altor Capital in Brisbane is an alternative asset manager founded in 2015 that employs a multi-strategy approach.

The firm invests across a range of alternative asset classes — including hedge funds, private equity, and private debt — with a focus on growth-oriented companies. Its investment philosophy centres on protecting the downside while positioning for upside potential through a disciplined, repeatable process.

The team, based in Brisbane, targets investments in sectors such as electronic equipment, financial software, and entertainment software and now sport.