TLDR:
- Arctos Partners closed its second sports team investment fund with over $4.1 billion in assets.
- About 30% of the fund is invested in four sports organizations including the Utah Jazz and Paris Saint-Germain F.C.
Summary:
Arctos Partners recently announced the closing of its second sports team investment fund, accumulating more than $4.1 billion in assets. The private equity group, founded with the goal of being a preferred partner for ownership groups looking to expand their platforms, has seen significant success in attracting institutional investors to the unique asset class. Approximately 30% of the fund has already been invested, with notable stakes in the Utah Jazz, Harris Blitzer Sports Entertainment, Paris Saint-Germain F.C., and the Aston Martin Aramco Formula 1 Team.
Arctos’ strategy involves buying minority stakes in professional teams and related sports businesses, capitalizing on the increasing interest from institutional investors in owning franchises. The company currently manages about $7 billion in assets across its two sports funds, with investments in 23 sports and esports teams, as well as stakes in other sports-related businesses such as Elevate Ventures and the Golden State Warriors.
While Arctos has gained international investors and may venture into global sports brands like PSG, the company remains focused on the North American market. Educating institutional investors on the unique attributes of North American sports, which are seen as IP and royalty businesses with long-term revenue streams, has been a key aspect of Arctos’ efforts.
In addition to its sports investments, Arctos also launched a similar model for buying limited partner stakes in the private equity industry called Arctos Keystone. Overall, the success of Arctos’ latest fundraise highlights the growing interest and potential for institutional investment in professional sports teams and related businesses, signaling a shift in the industry landscape.
