Dallas-based Arctos raises over  billion to invest in sports teams, leagues » Dallas innovates

Dallas-based Arctos raises over  billion to invest in sports teams, leagues » Dallas innovates

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 related parallel vehicles, the fund closed with 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 Arcto’s total sports assets under management to about $7 billion, the firm said.

Arctos provides custom growth and liquidity solutions, innovative thought partnerships and value creation services to sports franchises and alternative asset managers.

“Arctos was purpose-built to bring more than just capital to our teams, leagues and partner businesses,” Ian Charles, co-founder and managing partner of Arctos, said in a statement. “Using insights powered by data science coupled with deep operational and field expertise, we are proud to be a trusted partner for major sports franchises and limited partners seeking access to this powerful and sustainable 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 world’s largest pool of institutional capital dedicated exclusively to professional sports franchise investments, the firm said.

Arctos said Evercore Private Funds Group acted as exclusive global placement agent for the Fund II raise and Kirkland & Ellis LLP provided legal counsel to Arctos.

Investing in multiple teams in multiple sports

Approximately 30% of Fund II’s equity is spread across several investments, including Smith Entertainment Group, the holding company that owns the NBA’s Utah Jazz; Harris Blitzer Sports Entertainment, 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, global motor sports organizations and European soccer federations.

“In just over three years, we’ve seen demand for sports as an asset class grow tremendously,” Arcto co-founder and managing partner Doc O’Connor said in a statement. “Arctos is uniquely positioned as a growth and thought partner to innovate, unlock opportunities and transform the markets we participate in. 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 expertise in industries, geographies and economic cycles. The firm also has office locations in New York and London.

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