Private equity firm Arctos has closed its second sports team investment fund, raising more than US$4.1 billion in commitments.
Confirmed:
- Second fund attracts a range of investors including pension funds, family offices, and global wealth platforms
- Arctos says both its funds ‘represent the world’s largest aggregation of institutional capital’ focused exclusively on sports team investments
- Sports-related assets under Arctos’s management are worth about US$7 billion
Context:
About 30 per cent of the second fund’s capital has already been deployed across several investments, including in Harris Blitzer Sports Entertainment (HBSE), which owns the National Basketball Association’s (NBA) Philadelphia 76ers and the National Hockey League’s (NHL) New Jersey Devils.
Arctos has also invested in French soccer giants Paris Saint-Germain, the Aston Martin Formula One team, and Smith Entertainment Group, which owns the NBA’s Utah Jazz. It is the only firm that holds approval to invest in multiple teams in all major US sports leagues that permit private equity investment.
Comment:
“Arctos was purpose-built to bring more than just capital to our partner teams, leagues and businesses,” said Ian Charles, co-founder and co-managing partner of Arctos.
“By using data science-backed insights paired with deep operational and domain expertise, we are proud to be a trusted partner for major sports franchises and limited partners seeking access to this robust and durable industry. We are all very grateful for the support of our investors and the leagues, owners and operators who have chosen to partner with us.”
“In just over three years, we have seen the demand for sports as an asset class grow tremendously,” added Doc O’Connor, co-founder and co-managing partner of Arctos.
“Arctos is uniquely positioned as a growth and thought partner to innovate, unlock opportunity and transform the markets we participate in. With the success of Fund II, our firm is well-positioned at the forefront of the professional sports ownership market.”
Coming next:
Charles told Sportico that the firm will remain focused on the North American market when it comes to spotting future investment opportunities.
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