Private investment group Arctos Capital Partners has announced that the second iteration of its Arctos Sports Partners Fund (Fund II) has closed with almost double its target funding secured.
Fund II secured over $4.1 billion in funding commitments from a range of investors, making the combined wealth of it and its predecessor Fund I the single largest sports exclusive funding pool on the planet.
The two combined funds represent around $7 billion in wealth directly for use in sports, and as much as 30% of Fund II’s capital has already been dispensed across several investments and a variety of sports.
Most prominently, in December 2023 Arctos became a minority shareholder in French soccer giants Paris Saint-Germain (PSG).
Arctos’ stake in PSG, understood to be around 12.5%, makes it the only organization to dilute Qatar Sports Investment’s 100% stake in the club since it purchased the club fully in 2012, with the investment providing expertise in the North American market that is valuable to the club.
Other prominent investments include a stake in the Aston Martin F1 motor racing team, the Utah Jazz NBA basketball franchise owners Smith Entertainment Group, and Philadelphia 76ers (NBA) and New Jersey Devils (NHL ice hockey) franchise owners Harris Blitzer Sports Entertainment.
Arctos was likely able to attract this funding due to its strong position in the sports investment landscape as the only firm with approval to invest in multiple sports franchises by the major US sports leagues (MLB, NBA, NHL, MLS), as well as motor racing organizations and European soccer federations.
The vastness of the funding indicates the strength of the sports investment landscape, with Arctos co-founder and co-managing partner Doc O’Connor stating: “In just over three years, we have seen the demand for sports as an asset class grow tremendously.
“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.”
