Earvin ‘Magic’ Johnson is a legendary NBA player who has built a hugely successful business and investment empire. After retiring from the NBA, Johnson founded Magic Johnson Enterprises, which has invested in a diverse portfolio of companies and real estate. Some of Johnson’s most notable investments have been in Starbucks, EquiTrust Life Insurance Company, Aspire TV network and Canyon Johnson investment funds focused on urban real estate. Johnson’s investment philosophy focuses on underserved urban communities and minority-owned businesses. Throughout his business career, Johnson has demonstrated keen deal-making skills and a savvy eye for emerging companies and markets. His investment group and partners have injected capital into promising startups and growth companies across technology, media, financial services, infrastructure and real estate sectors. Johnson serves as chairman and CEO of Magic Johnson Enterprises and continues to be a highly influential investor and dealmaker.
Early success with Starbucks investment displayed Johnson’s business acumen
One of Magic Johnson’s earliest and most successful investments was in Starbucks in the early 1990s. He invested alongside billionaire investor Paul Allen and became a Starbucks board member. Starbucks was still a small Seattle-based coffee chain at the time, but Johnson recognized its huge growth potential. His investment quickly paid off as Starbucks began expanding nationally and internationally at a rapid pace throughout the 1990s and 2000s. The Starbucks investment demonstrated Johnson’s keen eye for spotting emerging consumer brands with major growth runway ahead of them.
EquiTrust Life Insurance bet highlighted Johnson’s focus on urban markets
In the late 1990s, Magic Johnson acquired a majority stake in EquiTrust Life Insurance Company. The deal stood out for valuing the insurance company at $60 million when its revenues were only about $12 million annually. Johnson’s belief was that EquiTrust could successfully target urban minority communities that were underserved by large insurance companies. Under Johnson’s ownership, EquiTrust expanded into more states and increased its agent force and revenues dramatically. The successful turnaround of EquiTrust illustrated Johnson’s focus on tapping into urban and minority markets.
Aspire TV network demonstrated Johnson’s commitment to serving the African American community
In 2004, Magic Johnson co-founded Aspire TV network alongside major partners like Comcast and Radio One. Aspire was envisioned as a positive lifestyle and entertainment brand for the African American community. Johnson served as Aspire’s chairman and was the face of the new network. Aspire provided a mix of programming focused on music, arts, Black colleges and culture. Although Aspire struggled to gain distribution and viewership for many years, Johnson remained committed to the mission of delivering positive portrayals of Black life and culture. The Aspire TV investment reflected Johnson’s broader goals of advocating for the African American community.
Urban real estate funds with Canyon Johnson targeted underserved markets
In 1998, Magic Johnson partnered with developer Steve Stagner to form Canyon Johnson, an urban real estate investment fund. The vision was to bring quality real estate and development back into underserved urban neighborhoods. Canyon Johnson’s first fund raised over $500 million to invest in multifamily affordable housing, retail centers and mixed-use projects. Additional funds followed, with total investments exceeding $3 billion. Canyon Johnson demonstrated that lower income urban areas could be viable markets with the right vision and partners. Magic Johnson devoted significant time and energy into the urban real estate funds as he saw Canyon Johnson as a way to deliver positive change in cities across America.
Throughout his business and investing career, Magic Johnson has displayed vision, strategic deal-making skills, and commitment to making a positive impact, especially in urban minority communities. His track record of successful investments across sectors is a testament to Johnson’s acumen and ability to spot emerging companies and trends.