Arctos’ Post

We are honored to be among the first private investment firms being considered by the National Football League (NFL) as potential partners for their clubs and owners. While there is much work ahead, today is a milestone reflecting Arctos’ commitment to the sports industry, our position as the market innovator and passion for being the partner of choice for leading sports ownership groups. Pending final approval, Arctos would be the only firm approved to invest in equity across each of the five most popular major North American leagues. We thank the NFL for its trust and look forward to contributing to the League’s continued success. https://lnkd.in/eg4f_sgU

Congratulations are in order for Arctos’ own Kaitlin Rodriguez, who has been named in Sports Business Journal’s “New Voices Under 30” list for 2024.   We are thrilled to see Kaitlin recognized as a next-generation talent and future leader at the intersection of sports business and private equity, and are proud to call her a member of our team.   Read the full list here: https://lnkd.in/giPitQyK?   #privatemarkets #sportsbusiness #assetmanagement

Arctos recently released the Q2 2024 performance of the Ross-Arctos Sports Franchise Index (“#RASFI”). Sports franchises in RASFI, representing the “Big 4” North American leagues, saw valuation growth of 3.0%, or 12.6% on an annualized basis, in the second quarter of 2024. RASFI performance through the first half of 2024 was 7.8% (~16% annualized), performing ~300 bps higher year-to-date than the long-term annualized performance for RASFI of ~13%. Read More: https://lnkd.in/g6Wkcpk2

Arctos recently released the Q2 2024 performance of the Ross-Arctos Sports Franchise Index (“#RASFI”). Sports franchises in RASFI, representing the “Big 4” North American leagues, saw valuation growth of 3.0%, or 12.6% on an annualized basis, in the second quarter of 2024. RASFI performance through the first half of 2024 was 7.8% (~16% annualized), performing ~300 bps higher year-to-date than the long-term annualized performance for RASFI of ~13%.

Current interest rate levels, the highest since the dot-com era, are leading to higher equity contributions from sponsors and are likely to diminish the impact of leverage on buyout returns going forward, eroding a source of value that managers relied on during the ZIRP era. Read More: https://lnkd.in/g8FCM8iv #ChartOfTheWeek

Current interest rate levels, the highest since the dot-com era, are leading to higher equity contributions from sponsors and are likely to diminish the impact of leverage on buyout returns going forward, eroding a source of value that managers relied on during the ZIRP era. #PrivateEquity #ArctosInsights #ChartOfTheWeek

For managers in public and most private markets, outperformance, or ‘alpha’, can be measured using performance against well-tested benchmarks. In contrast, sports investors have historically lacked regular and reliable pricing data with which to assess their performance. In creating the Ross Arctos Sports Franchise Index (#RASFI), we believe that we have built one of the first purely data-driven sports franchise benchmarks. When measuring #alpha in a closed system like North American Big 4 transactions, alpha will always sum to zero across all transactions, but we believe the variance of alpha outcomes across transactions can be quite informative. Read More: https://lnkd.in/gPYNZ2-S #ChartOfTheWeek

For managers in public and most private markets, outperformance, or ‘alpha’, can be measured using performance against well-tested benchmarks. In contrast, sports investors have historically lacked regular and reliable pricing data with which to assess their performance. In creating the Ross Arctos Sports Franchise Index (#RASFI), we believe that we have built one of the first purely data-driven sports franchise benchmarks. When measuring alpha in a closed system like North American Big 4 transactions, alpha will always sum to zero across all transactions, but we believe the variance of alpha outcomes across transactions can be quite informative. #ChartOfTheWeek

Revenue growth and margin enhancement across the private equity industry are in particular focus as a go-forward driver of managers’ returns. Yet, following a period of post-COVID inflationary growth, data on private company performance shows that revenue and EBITDA growth slowed to pre-COVID levels across the industry in 2023, and have further decelerated through 1Q24. Read More: https://lnkd.in/g9jnvc7a