Amistad Financial Group is facing scrutiny after the firm, in which NBA legend Magic Johnson holds a minority stake, reportedly extended more than $2 billion in loans to companies connected to billionaire sports mogul Mark Walter, who is facing federal investigations into his insurance businesses.
According to the Los Angeles Times, Amistad Financial Group lent approximately $1.26 billion directly to Walter-linked companies between March and June 2026. Another $1.06 billion reportedly went to intermediaries that have previously facilitated loans to Walter’s business interests,
bringing the combined lending to approximately $2.31 billion. Johnson serves as a board member and minority shareholder of Amistad but does not sit on its three-person executive committee. According to the reporting, there is no indication that Johnson participated in or knew about the lending decisions.The situation highlights the financial and governance considerations that accompany complex investment partnerships, particularly when business interests intersect across multiple companies and industries.
Federal investigators are examining whether Walter’s insurance companies properly disclosed more than $20 billion in loans and investments involving other businesses tied to him. The inquiries involve the U.S. Department of Justice and the Securities and Exchange Commission.
Amistad subsidiaries EquiTrust Life Insurance Co. and Heritage Life Insurance Co. reportedly supplied much of the recent financing. Some of the loans were connected to businesses associated with Walter’s stake in used-car retailer Carvana and his investment in the Billie Jean King Cup, a women’s tennis competition. Meanwhile, Walter has been working to reduce debt owed to his own insurance companies amid concerns from credit rating agencies. He also agreed to sell his majority stake in the Los Angeles Lakers for $12.5 billion, a transaction reported as part of his efforts to free up capital.
Johnson and Walter have worked together for more than a decade, building a portfolio of sports investments that includes the Los Angeles Dodgers and the Los Angeles Sparks. Their partnership began with the 2012 purchase of the Dodgers for $2.15 billion and expanded to the Sparks in 2014. Johnson has also credited Walter’s mentorship with helping him navigate the business world. “Part of my secret sauce was to align myself with great partners like Mark Walter, and also to allow great men like him to mentor me and teach me business,” Johnson said during a 2024 interview at the Milken Institute Global Conference, according to Bloomberg Law
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