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Charterhouse invests in data-driven sports marketing company Two Circles

January 10, 2024

Charterhouse Capital Partners (“Charterhouse”) today announces its investment in Two Circles (the “Company”), a leading international data-driven sports marketing company.

Founded in 2011 and headquartered in London, UK, Two Circles is an international data-driven sports marketing company partnering with more than 400 sports properties. Two Circles manages and analyses fan data on behalf of these clients, providing them with insight into fan behaviour. These insights are used to influence board-level decision-making and generate transformational commercial returns through services in rights-managing, ticketing, event-hosting, streaming services, e-commerce, sponsorship sales, content creation and strategy consulting.

Two Circles has long-term partnerships with a large number of blue-chip sports properties globally, including the NFL, the IOC, LA28, F1, the Premier League, UEFA and FIFA. Since its foundation, 92% of the clients entering a retained relationship with Two Circles continue to partner with the company.

Charterhouse focuses on investments in which it can partner with dynamic management teams who are reinvesting significantly alongside the fund.  The firm invests into Western European mid-market companies with strong international prospects, in resilient growth sectors, where there is an opportunity for transformational growth, both organically and through M&A.  It is highly selective, building a conviction-led portfolio in each fund and taking a disciplined approach to all aspects of its deals, including ensuring that financing supports, and does not constrain, growth.

Two Circles is strongly aligned with the Charterhouse investment approach and Charterhouse will work together with the management team to support the next stage of the Company’s growth journey. The transaction marks the fourth platform deal Charterhouse has made in the UK through CCP X and XI, which represent more than €800m of invested capital.  

Charterhouse will leverage its deep expertise in the business services sector, where the firm has invested €3bn since 2009 and generated an IRR of over 30% from 16 platform investments. Recent notable transactions include Labelium, a leading B2B digital marketing and consulting agency; LCP, a leading pensions consultancy firm; and SLR, a leading global sustainability consultancy.

Charterhouse’s investment in Two Circles is its fourth new platform investment in the last 12 months, following its recent investments in Kids&Us in Spain, France Valley in France, and Labomar in Italy. It also follows the successful exits of five assets, which in aggregate generated an MoC of 3x and an IRR of 31%.

Gareth Balch, Co-founder and CEO at Two Circles, commented:

“I am incredibly proud of our brilliant team for achieving this partnership with Charterhouse. Our focus is on becoming the best business we can be and we want to build a better future for the sports industry.

Charterhouse’s interest in our business reflects the commitment our clients have made to embrace a fan-focused and technology-enabled future. We will continue to work with our clients to harness the possibilities of digitisation and technology to grow the value of sport while nurturing the spirit and heritage that attracts hundreds of millions of fans and players to the games, teams and competitions they love. This partnership with Charterhouse will enable Two Circles to do this in more places worldwide and importantly, to collaboratively identify and invest in the capabilities sports needs to thrive.”

Chris Warren, Partner at Charterhouse added:

“We are excited to be partnering with the exceptional team at Two Circles to support the Company’s strategic growth ambitions. Two Circles has been on a highly successful journey since its foundation, establishing itself as a leader in the growing global sports market and delivering consistent growth and profitability. We look forward to working closely with Gareth and the Two Circles team to help deliver continued growth, including providing additional capital to expand the firm’s offering and help it to enter new markets and geographies.”