Arctos

The share of private equity fundraising is increasingly concentrating in the hands of the largest firms. In fact, according to the Wall Street Journal, the top six firms raised nearly 60% of the total capital through the first three quarters of 2024 – up from just 20% five years ago. While the largest GPs continued to grow, many small managers took a “wait and see” approach to the market over the last two years, delaying new fund launches. As a result, the number of funds in market reached a decade-plus low in 2023 and fell to its lowest level since the Great Financial Crisis in 2024. We believe 2025 represents a “maturity wall” for these firms. We explore this and more in our most recent chart of the week, and in our recently published Keystone 1Q 2025 Market Update. More here: https://lnkd.in/g9V4uCRb

The share of private equity fundraising is increasingly concentrating in the hands of the largest firms. In fact, according to the Wall Street Journal, the top six firms raised nearly 60% of the total capital through the first three quarters of 2024 – up from just 20% five years ago. While the largest GPs continued to grow, many small managers took a “wait and see” approach to the market over the last two years, delaying new fund launches. As a result, the number of funds in market reached a decade-plus low in 2023 and fell to its lowest level since the Great Financial Crisis in 2024. We believe 2025 represents a “maturity wall” for these firms.

Last week, Arctos’ Co-Founder and Managing Partner Ian Charles spoke with Adam Le at PEI’s #NEXUS2025 on all things private markets – from consolidation to disruption and how GPs and LPs alike should confront the “new normal.” Thank you to Private Equity International for including Arctos in this fantastic event. #privatemarkets #privateequity

As we discussed last week, #viewership is not a perfect metric for understanding the value of sports content. Viewership, in and of itself, can be misleading without further context. For example, two variables that can heavily influence viewership are the network broadcasting the content and that network’s commitment to promoting said content. But what then drives the value for sports content? What matters to networks is not viewership per se, but viewership that drives revenue. Read More: https://lnkd.in/gBrXA2Ht Access Our Latest White Paper - Viewership Is Overrated: A Primer on Valuing Sports Media Deals: https://lnkd.in/gRejsQm2

As we discussed last week, #viewership is not a perfect metric for understanding the value of sports content. Viewership, in and of itself, can be misleading without further context. For example, two variables that can heavily influence viewership are the network broadcasting the content and that network’s commitment to promoting said content. But what then drives the value for sports content? What matters to networks is not viewership per se, but viewership that drives revenue. Read More: https://lnkd.in/gBrXA2Ht Access Our Latest White Paper - Viewership Is Overrated: A Primer on Valuing Sports Media Deals: https://lnkd.in/gRejsQm2

As we discussed last week, #viewership is not a perfect metric for understanding the value of sports content. Viewership, in and of itself, can be misleading without further context. For example, two variables that can heavily influence viewership are the network broadcasting the content and that network’s commitment to promoting said content. But what then drives the value for sports content? What matters to networks is not viewership per se, but viewership that drives revenue.

Many of us read a lot about television viewership in the sports business press. It is a simple and tangible metric that provides useful context for sports media storylines. But, we’d go as far as to say that regular season, average-minute viewership — the metric we keep reading about — without substantially more context provides limited information relevant to assessing the value of that content. There are several problems with the imperfect viewership data that we have. One of the issues that we address in our most recent flash piece is the fact that not all games are equal. Let’s take the National Hockey League (NHL) for example. Read More: https://lnkd.in/gr29dajU Access Our Latest White Paper - Viewership Is Overrated: A Primer on Valuing Sports Media Deals: https://lnkd.in/gRejsQm2

Many of us read a lot about television viewership in the sports business press. It is a simple and tangible metric that provides useful context for sports media storylines. But, we’d go as far as to say that regular season, average-minute viewership — the metric we keep reading about — without substantially more context provides limited information relevant to assessing the value of that content. There are several problems with the imperfect viewership data that we have. One of the issues that we address in our most recent flash piece is the fact that not all games are equal. Let’s take the National Hockey League (NHL) for example.

Arctos and the University of Michigan - Stephen M. Ross School of Business recently released the Q4 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 2.9% in the fourth quarter of 2024, or 12.2% on an annualized basis. The benchmark finished the 2024 calendar year with a strong 17.3% annual return, beating the long-term annual average performance of ~13% for the benchmark. Read More from Arctos Insights: https://lnkd.in/gWxgmk-Q Full Q4 Update: https://lnkd.in/e4sGGa3n

Arctos and the University of Michigan - Stephen M. Ross School of Business recently released the Q4 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 2.9% in the fourth quarter of 2024, or 12.2% on an annualized basis. The benchmark finished the 2024 calendar year with a strong 17.3% annual return, beating the long-term annual average performance of ~13% for the benchmark.