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Private equity firm Arctos Partners has acquired a minority equity stake in French soccer champions Paris Saint-Germain.
The deal reportedly values PSG at more than €4 billion (US$4.3 billion), with Arctos to buy up to 12.5 per cent of the Ligue 1 side.
The agreement intends to form the foundation of the next phase of PSG’s global growth and boost the club’s soccer and business operations. The investment from Arctos will go towards growing PSG’s operations and supporting their strategic real estate initiatives, including relating to their stadium and future development phases of the training centre at Poissy in suburban Paris.
Arctos will also provide strategic services, expertise and insights aimed at helping PSG achieve various future goals. This includes continuing the club’s international expansion into new markets, such as North America.
The pair will also work together on engaging new and existing fans across the globe, and collaborate to explore sports investment opportunities.
As a non-controlling owner, Arctos will not influence any on-field sporting matters. QSI will continue to have full control of all decisions at PSG.
Reports that Arctos was interested in acquiring a stake in PSG emerged in May. Arctos is one of the most active sports-focused private equity firms in the industry and has investments in more than 20 professional sports organisations across Major League Baseball (MLB), the National Basketball Association (NBA), Major League Soccer (MLS,) the National Hockey League (NHL), Formula One and European soccer.
Most recently, Arctos purchased a minority stake in the Aston Martin Formula One team, valuing the racing outfit at a reported UK£1 billion (US$1.3 billion).
“We are delighted to welcome Arctos into the Paris Saint-Germain family as a strategic partner and investor,” said QSI chairman Nasser Al-Khelaïfi. “As a club and institution, we are entering the next exciting phase of PSG’s growth and development, both on and off the pitch – which is based on long-term ambitions and attaining excellence in everything we do.
“Arctos is a fantastic partner to help us achieve our goals, bringing strategic expertise, ideas and innovation to our business, while providing investment and new relationships to support our footballing and sporting goals. From day one, they have passionately believed in our project, our plan and vision for the club – and we are proud to have them as part of our family.
“Today is an important milestone in Paris Saint Germain’s history, which will contribute greatly to the continued success and growth of our great club.”
Doc O’Connor, co-founder and managing partner of Arctos Partners, added: “QSI has transformed Paris Saint-Germain into one of the most renowned and successful football clubs in the world, building both a global brand and one of the most engaged fan communities in the world. Today, PSG is an iconic sports institution with a proud history and a regular contender for leading honours in domestic and European competitions.
“The first time we visited the club, we felt the magic of PSG and its deep connection to the city of Paris. Our investment in the club fully aligns with our strategy of partnering with best-in-class teams across North America and Europe. We are excited to be joining the PSG family and look forward to working together with president Nasser Al-Khelaïfi to maximise the club’s potential, providing strategic expertise and investment to drive the next phase of development, growth and success of this great institution.”
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