Investment

Arctos Closes Second Sports Team Investment Fund With $4.1B

Published

7 months ago

April 2, 2024

Arctos Partners said its second sports team investment fund has amassed more than $4.1 billion, as the private equity group announced the closing of the capital raising for the vehicle Tuesday.

“Our vision when we founded Arctos was to build a firm that was the partner of choice for the most sophisticated ownership groups in the world who had a big ambition to grow their platform and serve their fans,” Arctos co-founder Ian Charles said in a phone call. “We also want to be the partner of choice for institutional investors who want to invest into the very unique asset class. And this fundraise is an important milestone for us because it validates that we have done that for both.”

Arctos opened its second sports fund about two years ago, quickly raising an initial billion dollars with investment from half of the first sports funds’ investors, Sportico reported at the time. Today, about 30% of the second fund’s assets have been invested, including in the Utah Jazz; an upsized stake in Harris Blitzer Sports Entertainment, the owner of New Jersey Devils and Philadelphia 76ers; Paris Saint-Germain F.C.; and the Aston Martin Aramco Formula 1 Team.

The company said the second fund includes money from pension funds, retirement systems, endowments, insurance companies and global family and wealth investing offices. “The amount of attention and focus on the space has allowed us to broaden out, from an international perspective,” Charles said. “There’s a lot more interest in North American sport today than maybe two or three years ago.”

Coupled with the original sports fund, Arctos has about $7 billion in assets under management for sports teams. The company’s strategy is to buy minority stakes in pro teams and related sports business.

It is only in recent years most pro leagues have started allowing institutional investors to buy ownership stakes in their franchises, in part given the rapid rise in franchise values. The NBA, MLB, NHL and MLS allow various levels of fund ownership (the NFL does not.)

Across the two funds, Arctos is believed to have investments in 23 sports and esports teams, along with stakes in another seven sports-related businesses, including Elevate Ventures and the Golden State Warriors.

“We’re very proud to have been the first club to partner with Arctos in the NBA,” Warriors owner Joe Lacob said in a statement provided to Sportico. “They’ve been an incredible partner to me, the Golden State Warriors, and the league. With this new fund and greater resources, we and others can look forward to growing through their partnership.” Arctos owns about 13% of the NBA franchise.

Charles said while the fund has drawn more international investors and may invest in some global sports brands outside the U.S., like with PSG, Arctos will remain focused on the North American market. “A big part of our effort has been educating the institutional investor community about the very unique attributes of North American sports,” he said. “These are IP businesses, they are royalty businesses with a global customer base, long-term revenue streams and really attractive business fundamentals that are not easy for institutional investors to access.”

Arctos isn’t solely sports focused: Last year the business rolled out a similar model of buying limited partner stakes in the private equity industry called Arctos Keystone.

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Investment

Tesla shares soar more than 14% as Trump win is seen boosting Elon Musk’s electric vehicle company

Published

3 days ago

November 6, 2024

Anne Joseph

NEW YORK (AP) — Shares of Tesla soared Wednesday as investors bet that the electric vehicle maker and its CEO Elon Musk will benefit from Donald Trump’s return to the White House.

Tesla stands to make significant gains under a Trump administration with the threat of diminished subsidies for alternative energy and electric vehicles doing the most harm to smaller competitors. Trump’s plans for extensive tariffs on Chinese imports make it less likely that Chinese EVs will be sold in bulk in the U.S. anytime soon.

“Tesla has the scale and scope that is unmatched,” said Wedbush analyst Dan Ives, in a note to investors. “This dynamic could give Musk and Tesla a clear competitive advantage in a non-EV subsidy environment, coupled by likely higher China tariffs that would continue to push away cheaper Chinese EV players.”

Tesla shares jumped 14.8% Wednesday while shares of rival electric vehicle makers tumbled. Nio, based in Shanghai, fell 5.3%. Shares of electric truck maker Rivian dropped 8.3% and Lucid Group fell 5.3%.

Tesla dominates sales of electric vehicles in the U.S, with 48.9% in market share through the middle of 2024, according to the U.S. Energy Information Administration.

Subsidies for clean energy are part of the Inflation Reduction Act, signed into law by President Joe Biden in 2022. It included tax credits for manufacturing, along with tax credits for consumers of electric vehicles.

Musk was one of Trump’s biggest donors, spending at least $119 million mobilizing Trump’s supporters to back the Republican nominee. He also pledged to give away $1 million a day to voters signing a petition for his political action committee.

In some ways, it has been a rocky year for Tesla, with sales and profit declining through the first half of the year. Profit did rise 17.3% in the third quarter.

The U.S. opened an investigation into the company’s “Full Self-Driving” system after reports of crashes in low-visibility conditions, including one that killed a pedestrian. The investigation covers roughly 2.4 million Teslas from the 2016 through 2024 model years.

And investors sent company shares tumbling last month after Tesla unveiled its long-awaited robotaxi at a Hollywood studio Thursday night, seeing not much progress at Tesla on autonomous vehicles while other companies have been making notable progress.

Tesla began selling the software, which is called “Full Self-Driving,” nine years ago. But there are doubts about its reliability.

The stock is now showing a 16.1% gain for the year after rising the past two days.

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Investment

S&P/TSX composite up more than 100 points, U.S. stock markets mixed

Published

3 weeks ago

October 16, 2024

Anne Joseph

TORONTO – Canada’s main stock index was up more than 100 points in late-morning trading, helped by strength in base metal and utility stocks, while U.S. stock markets were mixed.

The S&P/TSX composite index was up 103.40 points at 24,542.48.

In New York, the Dow Jones industrial average was up 192.31 points at 42,932.73. The S&P 500 index was up 7.14 points at 5,822.40, while the Nasdaq composite was down 9.03 points at 18,306.56.

The Canadian dollar traded for 72.61 cents US compared with 72.44 cents US on Tuesday.

The November crude oil contract was down 71 cents at US$69.87 per barrel and the November natural gas contract was down eight cents at US$2.42 per mmBTU.

The December gold contract was up US$7.20 at US$2,686.10 an ounce and the December copper contract was up a penny at US$4.35 a pound.

This report by The Canadian Press was first published Oct. 16, 2024.

Companies in this story: (TSX:GSPTSE, TSX:CADUSD)

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Economy

S&P/TSX up more than 200 points, U.S. markets also higher

Published

4 weeks ago

October 11, 2024

Anne Joseph

TORONTO – Canada’s main stock index was up more than 200 points in late-morning trading, while U.S. stock markets were also headed higher.

The S&P/TSX composite index was up 205.86 points at 24,508.12.

In New York, the Dow Jones industrial average was up 336.62 points at 42,790.74. The S&P 500 index was up 34.19 points at 5,814.24, while the Nasdaq composite was up 60.27 points at 18.342.32.

The Canadian dollar traded for 72.61 cents US compared with 72.71 cents US on Thursday.

The November crude oil contract was down 15 cents at US$75.70 per barrel and the November natural gas contract was down two cents at US$2.65 per mmBTU.

The December gold contract was down US$29.60 at US$2,668.90 an ounce and the December copper contract was up four cents at US$4.47 a pound.

This report by The Canadian Press was first published Oct. 11, 2024.

Companies in this story: (TSX:GSPTSE, TSX:CADUSD)

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