Two Circles, a marketing firm owned by Bruin Capital, is being bought by London private equity firm Charterhouse Capital Partners.
The deal is said to be for around $315 million, according to a person familiar with the transaction who asked not to be identified because they aren’t authorized to speak publicly. The sale is expected to be closed in the current quarter, according to an announcement from the companies Wednesday.
“This was a textbook collaboration and now a terrific outcome for everyone involved. We can’t be more thrilled for [Two Circles founder and CEO] Gareth [Balch] and the Two Circles’ team,” Bruin founder George Pyne said in a statement. “The company’s growth, global expansion and diversification over the last four years is a masterclass in value creation.”
Bruin Capital acquired 80% of Two Circles in December 2019 at an enterprise value of $40 million. Under the expected terms of the Charterhouse buyout, that would give Bruin an internal rate of return (IRR) of over 60%. IRR is an annualized metric of profitability preferred by the private equity industry. Bruin most notably has bought and successfully sold stakes in On Location Experiences and Deltatre, among numerous other deals in the sports world.
Two Circles is a marketing firm that processes more fan data than any other company in the world, according to Bruin’s website. The business focuses on maximizing sports rights, increasing fan engagement and boosting commercial performance. Its current and past clients include the NFL, Premier League, Formula 1 and Wimbledon. Two Circles in part helped Bruin execute OverTier, a venture created to operate NFL Game Pass around the globe.
Balch, a former middle-distance runner, founded Two Circles in 2011. Its name refers to the number of laps on an outdoor track for his main race, the 800 meters. The UK-based firm also has offices on mainland Europe, Australia and the U.S.
Charterhouse is a London-based investment fund with a diversity of investments in healthcare and consumer services.
“In a rapidly changing media landscape, sport has the potential to become more popular and valuable than ever before,” Charterhouse partner Chris Warren said. “We believe Two Circles is emerging as the first digitally native global sports group and will lead the next era for the sports industry to help its clients navigate the changes ahead and fulfil their potential.”
(This story has been updated with the official news of the Two Circles sale.)