April 13, 2024

Dallas-Based Arctos Raises Over $4B to Invest in Sports Teams, Leagues » Dallas Innovates

Dallas-based private investment firm Arctos has closed Arctos Sports Partners Fund II, the latest iteration of the firm’s flagship sports fund. Along with co-investment and parallel affiliated vehicles, the fund closed with more than $4.1 billion in capital commitments from a diverse group of global investors, the firm said.

Those 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’ aggregate sports-related assets under management to approximately $7 billion, the firm said.

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

“Arctos was purpose-built to bring more than just capital to our partner teams, leagues and businesses,” Ian Charles, co-founder and co-managing partner of Arctos, said in a statement. “By using data science-backed insights paired 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 durable 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 aggregation of institutional capital dedicated exclusively to professional sports franchise investments, the firm said.

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

Investing in multiple teams across multiple sports

Roughly 30% of Fund II’s capital has been deployed across several investments, including Smith Entertainment Group, the holding company that owns the Utah Jazz of the NBA; Harris Blitzer Sports Entertainment, the owner of New Jersey Devils and Philadelphia 76ers; Paris Saint-Germain FC, and Aston Martin Aramco Formula One Team.

Arctos said that it’s currently the only institutional investor approved to invest in multiple teams by MLB, the NBA, the NHL, MLS, global motor sports organizations, and European soccer federations.

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

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