Arctos Sports Partners, a private equity investor focused on the sports industry, is reportedly in discussions to acquire a minority stake in Paris Saint-Germain (PSG), the football club currently home to stars like Kylian Mbappe and Lionel Messi. The talks are in their early stages, and Arctos is considering a stake of between 5% and 15%.
According to sources familiar with the matter, PSG is currently valued at around €4.2bn ($4.6bn). Qatar Sports Investments, the current owner of PSG, is looking to expand its sports investments portfolio and recently acquired a minority stake in Portugal's SC Braga.
Arctos Sports Partners is among a small group of private equity investors dedicated to investing in the sports industry. Other investors in this group include RedBird Capital Partners and Dyal Capital Partners.
While PSG is one of the most successful football clubs in France, it has been in a dispute with the Paris authorities over the modernisation of its stadium, the Parc des Princes. The club has been forced to look at alternative sites after encountering difficulties with the city over its plans. PSG President Nasser Al-Khelaifi has been vocal about the need for a better stadium in Paris.
Last year, PSG drew interest from potential buyers for a minority stake. Two of the potential buyers were US-based, while the other was European. The funding was intended to help grow the business.
Recently, PSG made headlines for suspending Lionel Messi, a World Cup winner, for missing a training session after he travelled to Saudi Arabia for a business engagement without permission. Despite this, the club remains one of the most successful and popular football clubs in France and around the world.