<a href="https://www.sportico.com/t/arctos-partners/" id="auto-tag_arctos-partners_2" data-tag="arctos-partners" >Arctos Partners</a> said its second sports team investment fund has amassed more than $4.1 billion, as the private equity group announced the closing of the capital raising for the vehicle Tuesday.<br> “Our vision when we founded Arctos was to build a firm that was the partner of choice for the most sophisticated ownership groups in the world who had a big ambition to grow their platform and serve their fans,” Arctos co-founder Ian Charles said in a phone call. “We also want to be the partner of choice for institutional investors who want to invest into the very unique asset class. And this fundraise is an important milestone for us because it validates that we have done that for both.” <br> Arctos opened its second sports fund about two years ago, <a rel="noreferrer noopener" href="https://www.sportico.com/business/finance/2022/arctos-sports-launches-second-fund-1234674530/" target="_blank">quickly raising</a> an initial billion dollars with investment from half of the first sports funds’ investors, <em>Sportico</em> reported at the time. Today, about 30% of the second fund’s assets have been invested, including in <a rel="noreferrer noopener" href="https://www.sportico.com/business/sales/2022/arctos-buys-utah-jazz-stake-1234686259/" target="_blank">the Utah Jazz</a>; an <a rel="noreferrer noopener" href="https://www.sportico.com/business/team-sales/2023/arctos-hbse-investment-again-1234732335/" target="_blank">upsized stake</a> in Harris Blitzer Sports Entertainment, the owner of New Jersey Devils and Philadelphia 76ers; Paris Saint-Germain F.C.; and the <a rel="noreferrer noopener" href="https://www.sportico.com/business/finance/2023/aston-martin-f1-team-arctos-partners-investment-1234746930/" target="_blank">Aston Martin</a> Aramco Formula 1 Team. <div class="admz" id="adm-inline-article-ad-1"> <div class="adma boomerang" data-device="Desktop" data-width="300"> <div style="" class="pmc-adm-boomerang-pub-div ad-text" data-priority="10" > <div id="gpt-sprt-dsk-tab-midarticle-uid0" class="adw-300 adh-250" data-is-adhesion-ad=""> <script type="application/javascript">
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</script> </div> </div> </div> </div> <br> The company said the second fund includes money from pension funds, retirement systems, endowments, insurance companies and global family and wealth investing offices. “The amount of attention and focus on the space has allowed us to broaden out, from an international perspective,” Charles said. “There’s a lot more interest in North American sport today than maybe two or three years ago.” <br> Coupled with the <a href="https://www.sportico.com/business/finance/2022/arctos-sports-assets-3-9-billion-1234673480/" target="_blank" rel="noreferrer noopener">original sports fund</a>, Arctos has about $7 billion in assets under management for sports teams. The company’s strategy is to buy minority stakes in pro teams and related sports business.<br> It is <a rel="noreferrer noopener" href="https://www.sportico.com/business/finance/2020/sports-team-ownership-billionaires-investment-funds-private-equity-1234609947/" target="_blank">only in recent years</a> most pro leagues have started allowing institutional investors to buy ownership stakes in their franchises, in part given the rapid rise in franchise values. The NBA, MLB, NHL and MLS allow various levels of fund ownership (the NFL does not.)<br><iframe title="Sports Leagues' Private Equity Ownership Rules" aria-label="Table" id="datawrapper-chart-1gYdk" src="https://datawrapper.dwcdn.net/1gYdk/" scrolling="no" frameborder="0" style="width: 0; min-width: 100% !important; border: none;" height="485" data-external="1"></iframe><script type="text/javascript">!function(){"use strict";window.addEventListener("message",(function(a){if(void 0!==a.data["datawrapper-height"]){var e=document.querySelectorAll("iframe");for(var t in a.data["datawrapper-height"])for(var r=0;r<e.length;r++)if(e[r].contentWindow===a.source){var i=a.data["datawrapper-height"][t]+"px";e[r].style.height=i}}}))}();</script><br> Across the two funds, Arctos is believed to have investments in 23 sports and esports teams, along with stakes in another seven sports-related businesses, including <a href="https://www.sportico.com/t/elevate/" id="auto-tag_elevate_2" data-tag="elevate" >Elevate</a> Ventures and the <a href="https://www.sportico.com/t/golden-state-warriors/" id="auto-tag_golden-state-warriors_2" data-tag="golden-state-warriors" >Golden State Warriors</a>.<br> “We’re very proud to have been the first club to partner with Arctos in the NBA,” Warriors owner Joe Lacob said in a statement provided to <em>Sportico</em>. “They’ve been an incredible partner to me, the Golden State Warriors, and the league. With this new fund and greater resources, we and others can look forward to growing through their partnership.” Arctos <a rel="noreferrer noopener" href="https://www.sportico.com/business/sales/2021/arctos-sports-golden-state-warriors-1234651214/" target="_blank">owns about 13%</a> of the NBA franchise.<br> Charles said while the fund has drawn more international investors and may invest in some global sports brands outside the U.S., <a rel="noreferrer noopener" href="https://www.sportico.com/business/finance/2023/arctos-buys-into-paris-saint-germain-1234754448/" target="_blank">like with PSG</a>, Arctos will remain focused on the North American market. “A big part of our effort has been educating the institutional investor community about the very unique attributes of North American sports,” he said. “These are IP businesses, they are royalty businesses with a global customer base, long-term revenue streams and really attractive business fundamentals that are not easy for institutional investors to access.”<br> Arctos isn’t solely sports focused: Last year the business <a rel="noreferrer noopener" href="https://www.sportico.com/business/finance/2023/arctos-keystone-private-equity-1234730100/" target="_blank">rolled out</a> a similar model of buying limited partner stakes in the private equity industry called Arctos Keystone. <br>Get our latest stories in the feed of your favorite networks<br>We want to hear from you! Send us a tip using our anonymous form.<br>Sign up for our daily newsletter<br>Sportico is a part of Penske Media Corporation. © 2024 Sportico Media, LLC. All Rights Reserved.<br><br><a href="https://news.google.com/rss/articles/CBMiW2h0dHBzOi8vd3d3LnNwb3J0aWNvLmNvbS9idXNpbmVzcy9maW5hbmNlLzIwMjQvYXJjdG9zLWNsb3Nlcy1zZWNvbmQtc3BvcnRzLWZ1bmQtMTIzNDc3MzQzNS_SAV9odHRwczovL3d3dy5zcG9ydGljby5jb20vYnVzaW5lc3MvZmluYW5jZS8yMDI0L2FyY3Rvcy1jbG9zZXMtc2Vjb25kLXNwb3J0cy1mdW5kLTEyMzQ3NzM0MzUvYW1wLw?oc=5">source</a>
