Arctos has made a second investment in the 76ers and the Devils, with an increased valuation attached.
In a significant move, private equity firm Arctos Sports Partners has increased its presence in the sports industry by purchasing a larger stake in Harris Blitzer Sports & Entertainment (HBSE). The deal, approved by both the NBA and NHL, comes at a lower valuation than HBSE's previous $4 billion topline valuation, thanks to an LP discount.
HBSE, led by Josh Harris and David Blitzer, is a prominent player in the sports and entertainment world, with a portfolio valued just over $4 billion. The company owns several high-profile teams and venues, including the Philadelphia 76ers (NBA), valued at $3.21 billion, and the New Jersey Devils (NHL), valued at $825 million.
Arctos Sports Partners' investment in HBSE is not their first foray into the world of professional sports. The firm, which positions itself as a leading private equity firm investing in sports franchises across North America and Europe, already holds minority stakes in multiple U.S. sports teams, such as the Chicago Cubs, Los Angeles Dodgers, Utah Jazz, Real Salt Lake, and Boston Red Sox (through Fenway Sports).
Their latest investment in HBSE is part of a broader strategy to acquire minority shares in high-growth sports assets alongside innovative owners. This strategy has proven successful, as evidenced by their 2023 investment in a stake of the Aston Martin Formula 1 team, which was valued at around $1 billion and has since grown to approximately $3.2 billion.
While the exact figures for Arctos's combined stake in the Philadelphia 76ers, New Jersey Devils, and other U.S. teams are not available, their overall sports investments place their ownership stakes collectively in the multi-billion dollar range given recent industry valuations and expanded private equity participation.
The initial investment by Arctos Sports Partners in HBSE was at a $3 billion valuation, and the second investment occurred at a higher valuation. Arctos has also co-invested with HBSE in a number of funds and companies, further solidifying their partnership.
In addition to their investments in traditional sports, Arctos Sports Partners has also ventured into women's football. They hold a piece of the NWSL's Utah Royals, which are valued at $100 million as part of a larger $580 million soccer buy.
As of the end of 2022, Arctos Sports Partners disclosed assets of $6.64 billion, a 69% increase from the year prior. With their latest investment in HBSE, this figure is expected to grow further, reflecting their continued growth and expansion in the sports industry.
People interested in sports and finance might find it noteworthy that Arctos Sports Partners, a leading private equity firm, has invested in Harris Blitzer Sports & Entertainment (HBSE), a sports and entertainment company with a combined portfolio worth over $4 billion. This investment is part of Arctos's strategy to acquire minority shares in high-growth sports assets, which has previously included stakes in teams like the Aston Martin Formula 1 team and the Utah Royals of the National Women's Soccer League. This move highlights Arctos's role in the business of sports, demonstrating their commitment to growing their investments in this field.
