James Packer has emerged as one of the backers behind a US investment firm’s minority stake in OnlyFans parent company Fenix International, according to reports.
San Francisco-based Architect Capital has agreed to buy 16 per cent of Fenix International for $US535 million, valuing the company at $US3.15 billion ($4.3 billion).
As first reported by the Financial Times, Architect Capital financed the deal by raising capital from wealthy investors and family offices, including Packer and US venture capitalist Sam Lessin, a partner at Slow Ventures.
Packer declined to comment when approached by the Australian Financial Review and The Australian.
OnlyFans takes outside capital
The transaction marks the first time OnlyFans has accepted outside capital since Ukrainian-American entrepreneur Leonid Radvinsky acquired a majority stake in the business in 2018.
Radvinsky, who died from cancer in March aged 43, helped turn OnlyFans into a major subscription-based content platform. It now has more than 4 million creators and 377 million users.
OnlyFans was founded in 2016 by British father-and-son duo Guy Stokely and Tim Stokely. The platform allows creators to charge fans for access to photos, videos and other content, and is widely known for adult content.
Following Radvinsky’s death, his widow, Yekaterina “Katie” Chudnovsky, took control of the business. The majority stake will remain with a trust led by Chudnovsky.
Packer’s technology investment play
The reported investment continues Packer’s long-running interest in digital and technology businesses.
Through Consolidated Press Holdings, Packer was an early investor in Seek and Carsales. He has also backed US real estate platform Zillow and sports betting group Flutter.
The former Crown Resorts and media executive is worth an estimated $5 billion, according to the Financial Review Rich List.
He stepped down from the Crown board in 2018, citing mental health, and later sold down his stake in the casino operator between 2019 and 2022.
A source familiar with Packer’s thinking told The Australian he viewed OnlyFans as a “positive force for content creators” and as exposure to technology outside his existing major holdings.
Architect Capital eyes creator economy
Architect Capital was founded by James Sagan in 2020. The firm describes itself as an asset manager focused on liquidity across novel and technology-enabled assets.
Sagan told The Australian that OnlyFans was a “category-defining platform with a powerful global brand, a deeply engaged community, and a proven model at the centre of the creator economy”.
“We are thrilled to play a part in the company’s next chapter and look forward to supporting OnlyFans as it continues to innovate, scale, and create value for creators and fans around the world,” Sagan said.
According to the report, Architect Capital is expected to explore new financial services for OnlyFans creators, either through bank partnerships or its own services.
Top image: James Packer