Arctos Partners announced that its second sports team investment fund has raised more than $4.1 billion, as the private equity group announced the end of vehicle financing on Tuesday.
“When we founded Arctos, our vision was to build a company that would be the partner of choice for the world's most sophisticated ownership groups with big ambitions to grow their platforms and serve their fans. ” said Arctos co-founder Ian Charles. Incoming phone call. “We also want to be the partner of choice for institutional investors who want to invest in a very unique asset class. And this fundraising shows that we have done that for both.” This is an important milestone for us as it proves that.”
Arctos launched its second sports fund about two years ago and quickly raised its first $1 billion in investments from half of the investors in the first sports fund. sportico It was reported at the time. Currently, about 30% of the second fund's assets are invested, including increased stakes in the Utah Jazz, Harris Blitzer Sports Entertainment, owner of the New Jersey Devils and Philadelphia 76ers, and・Includes Saint-Germain FC, Aston Martin Aramco, etc. F1 team.
The company said the second fund includes money from pension funds, retirement plans, endowments, insurance companies and global family wealth investment offices. “The attention and focus on this space has allowed us to expand our reach from an international perspective,” Charles said. “There's a lot more interest in sports in North America today than there was probably two or three years ago.”
Together with its original sports fund, Arctos manages approximately $7 billion in assets for sports teams. The company's strategy is to buy minority stakes in professional teams and related sports businesses.
Only in the past few years has most professional leagues begun allowing institutional investors to purchase ownership of franchises, in part because the value of franchises has been rising rapidly. The NBA, MLB, NHL, and MLS allow varying levels of fund ownership (the NFL does not).
Arctos is believed to have invested in 23 sports and esports teams across its two funds, as well as seven other sports-related companies, including Elevate Ventures and the Golden State Warriors. I am.
“We are extremely proud to be the first club in the NBA to partner with Arctos,” Warriors owner Joe Lacob said in a statement provided to this newspaper. mentioned in. sportico. “They have been a great partner for me, the Golden State Warriors and the league. With this new fund and greater resources, we and other companies look forward to growing through our partnership.” Arctos is an NBA franchise. owns approximately 13% of
Charles said the fund is attracting more international investors and may invest in global sports brands outside the United States, such as PSG, but Arctos will continue to focus on the North American market. He said he would go. “A big part of our effort has been educating the institutional community about the very unique attributes of North American sports,” he said. “These are IP businesses, loyalty businesses with a global customer base, long-term revenue streams, and very attractive business fundamentals that are not easily accessible to institutional investors.”
Arctos doesn't just specialize in sports. Last year, the company rolled out a similar model to buy limited partner shares in his private equity industry called Arctos Keystone.
