Private equity firm Arctos has successfully concluded the fundraising for its second sports team investment fund, amassing over US$4.1 billion in commitments from a diverse range of investors, including pension funds, family offices, and global wealth platforms.
This milestone underscores Arctos's position as a leading player in the sports investment landscape. According to Arctos, both of its funds collectively constitute the largest pool of institutional capital solely dedicated to sports team investments globally, with sports-related assets under its management valued at approximately US$7 billion.
A significant portion of the capital from the second fund has already been allocated to various investments. Notable among these is the backing of Harris Blitzer Sports Entertainment (HBSE), the entity behind the Philadelphia 76ers of the NBA and the New Jersey Devils of the NHL.
Arctos's investment portfolio extends beyond North America, with stakes in prominent entities such as Paris Saint-Germain in French soccer, the Aston Martin Formula One team, and Smith Entertainment Group, the proprietor of the NBA's Utah Jazz. The firm holds a distinctive position, being the sole entity authorised to invest in multiple teams across all major US sports leagues that permit private equity involvement.
Reflecting on this achievement, Ian Charles, co-founder and co-managing partner of Arctos, highlighted the firm's holistic approach, combining data science-backed insights with extensive operational and domain expertise to provide substantial value to partner teams, leagues, and businesses.
Echoing Charles's sentiment, Doc O'Connor, also co-founder and co-managing partner of Arctos, emphasised the burgeoning demand for sports as an asset class. He underscored Arctos's unique positioning as a growth and innovation partner, poised to capitalise on transformative opportunities within the professional sports ownership market.
With the successful closure of Fund II, Arctos stands poised to continue its trajectory as a pivotal player in the evolving landscape of sports investment, supported by robust investor backing and strategic partnerships with leagues, owners, and operators.