Some of the teams in which Arctos invests.
Dallas-based private equity firm Arctos has closed Arctos Sports Partners Fund II, the latest iteration of the firm’s flagship sports fund. Along with co-investments and side-by-side affiliates, the fund has closed more than $4.1 billion in capital commitments from a diverse group of global investors, the firm said.
These investors include some of the world’s leading pension funds, retirement systems, endowments, insurance companies, family offices and global wealth platforms, Arctos added.
The announcement brings Arctos’ total sports-related assets under management to approximately $7 billion, the firm said.
Arctos provides customized growth and liquidity solutions, innovative thinking partnership and value creation services for sports franchises and alternative asset managers.
“Arctos was created specifically to bring more than just capital to our partner teams, leagues and businesses,” said Ian Charles, co-founder and co-managing partner of Arctos, in a statement. “Using insights powered by data science combined 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 resilient 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.”
Fund II and its predecessor fund, Arctos Sports Partners Fund I, represent the largest global aggregation of institutional capital dedicated exclusively to professional sports franchise investments, the firm said.
Arctos said Evercore Private Funds Group acted as the exclusive global fundraising agent for Fund II, and Kirkland & Ellis LLP provided legal advice to Arctos.
Invest in multiple teams in multiple sports
Approximately 30% of Fund II’s capital is spread across several investments, including Smith Entertainment Group, the holding company that owns the NBA’s Utah Jazz; Harris Blitzer Sports Entertainment, the owner of the New Jersey Devils and Philadelphia 76ers; Paris Saint-Germain FC and Aston Martin Aramco Formula One Team.
Arctos said it is currently the only institutional investor approved to invest in multiple teams from the MLB, NBA, NHL, MLS, world motor sports organizations and European soccer federations.
“After just over three years, we’ve seen demand for sports as an asset class grow tremendously,” said Doc O’Connor, co-founder and co-managing partner of Arctos, in a statement. “Arctos is uniquely positioned as a growth and thinking partner to innovate, unlock opportunities and transform the markets in which we participate. With the success of Fund II, our firm is well positioned at the forefront of the professional sports ownership market.”
Founded in 2019, Arctos has a team of more than 50 investment and operational professionals with experience across industries, geographies and economic cycles. The firm also has offices in New York and London.
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