In a move more designed to set the value of the organization than provide an influx of capital, Harris Blitzer Sports & Entertainment announced Monday it has reach a deal to sell approximately 5% of the company to Arctos Sports Partners, a private equity firm.
Terms of the deal were not announced, though sportico.com — on Yahoo — said Arctos will purchase the interest over time.
HBSE is the parent company that owns the New Jersey Devils, the Prudential Center, the Philadelphia 76ers and a handful of other sports and entertainment entities. By selling just a small part of the company to an investor, it helps establish the market for HBSE’s overall worth, believed to be greater than $3 billion and rising.
Arctos, a private equity fund that launched in 2019, has raised more than $4 billion and is building a broad sports portfolio. Arctos has invested in the HBSE-owned Elevate Sports Ventures.
The Sixers (valued at more than $2.6 billion) and the Devils (valued at $750 million) are the two biggest properties of HBSE. That could soon change. HBSE is one of five entities still in the running to purchase the NFL’s Denver Broncos.