Charterhouse Capital Partners (CCP) has recently agreed to acquire a majority stake in the sports marketing company Two Circles. The completion of this deal is anticipated in the first quarter of 2024. Two Circles, led by CEO and co-founder Gareth Balch, will continue its operations with the existing management team. Additionally, the team at Two Circles has reinvested in the company, increasing their shareholding. Bruin Capital, the previous majority investor, exits the partnership having significantly grown Two Circles’ revenues by 450%.
Two Circles is a leading international sports marketing agency known for its data-driven approach, serving over 400 sports entities. The company specializes in analyzing billions of fan interactions, providing unparalleled insights into fan behaviors and preferences. These insights are critical in shaping strategic decisions and driving substantial commercial outcomes through various services such as rights management, ticketing, event hosting, streaming, e-commerce, sponsorship sales, content creation, and strategy consulting.
The company boasts long-term associations with world-renowned sports properties, including the NFL, IOC, International Cricket Council, LA28, F1, Premier League, UEFA, and FIFA. Since its inception in 2011, Two Circles has maintained a high retention rate, with 92% of its clients continuing their partnership.
Following Bruin’s investment in 2019, Two Circles expanded its workforce by 400%, growing to over 600 members, with a significant portion coming from outside the sports sector. The company also expanded its global footprint, opening new offices in Los Angeles, Paris, and Melbourne, in addition to its existing locations in London, Bern, and New York. During this period, Two Circles also diversified its services by acquiring various agencies and tech specialists, including TRM, SportsInk, Codeware, and LiveWire Sport.
Moreover, Two Circles has successfully invested in joint ventures with notable sports organizations like the DP World Tour, Ryder Cup Europe, FIBA, and the England & Wales Cricket Board (ECB), significantly contributing to their commercial growth.
Charterhouse, a long-standing private equity firm based in London, has a history of investing in technology-enabled service firms. Chris Warren, a partner at Charterhouse, emphasized Two Circles’ distinctive data-driven approach, consistent profitability, and growth since 2011 as key factors in their investment decision. He also highlighted the potential for sport to become increasingly popular and valuable, positioning Two Circles as a leader in the evolving digital sports landscape.
George Pyne, the founder of Bruin, praised the successful collaboration with Two Circles, highlighting the company’s remarkable growth and global expansion, especially considering the challenges posed by the COVID-19 pandemic.
Gareth Balch expressed gratitude towards Bruin and enthusiasm for the future with Charterhouse. He emphasized the company’s commitment to leveraging digitization and technology to enhance the value of sports. The partnership with Charterhouse is seen as an opportunity for Two Circles to expand its global presence and invest in capabilities crucial for the sports industry’s success. Balch looks forward to contributing to what he believes will be a golden era for sports.
