(Bloomberg) -- Fosun Sports Group is looking to raise around $100 million to help it grow its esports portfolio and invest in Premier League football team Wolverhampton Wanderers.

The amount of capital being raised hasn’t been finalized, according to people familiar with the situation, who asked not to be named discussing confidential information.

Fosun Sports Group declined to comment.

Fosen Sports Group is an arm of Chinese conglomerate Fosun International Ltd. — whose businesses span tourism, pharmaceuticals and finance — which has been divesting assets and cutting borrowing after credit concerns triggered a bond and stock selloff. Last month, Fosun sold some of its stake in Banco Comercial Português for €235 million.

Fosun International didn’t immediately respond to a request for comment.

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Fosun Sports Group owns Wolves and is minority shareholder and strategic partner of Seattle-based esports firm Evil Geniuses. Chicago-based investor Peak6 bought a stake Fosun Sports Group in 2021. 

Once considered a potential successor to traditional sports, the esports industry has significantly declined since 2017. Funds from advertisers, media-rights deals, game publishers and sports-business billionaires bled out of the nascent industry as organizations struggled to find channels for sustainable revenue. 

Recently, esports M&A activity is concentrated in Saudi Arabia, where the country’s public investment fund-backed Savvy Games Group bought up several esports companies with the intent of operating tournaments in the country.

Wolves, who beat Chelsea FC last weekend, made a £43.1 million ($54.3 million) loss in the year to May 2022, according to the latest available filings.

--With assistance from Shirley Zhao and Cecilia D'Anastasio.

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