Alongside the personal fairness giants investing large in professional sports activities groups and media giants like Disney pouring cash into their theme parks, these traders see alternative within the firms that design and trick out arenas, present ticketing companies, and extra.

They embody Providence Equity Partners, which simply took an undisclosed minority stake in Populous, an structure and design agency whose portfolio consists of Yankee and Wembley stadiums.

There’s additionally Bluestone Equity Partners, which launched this yr with $300 million and has up to now invested in two firms that serve sports activities and leisure venues.

Providence has been betting on stay entertainment-related companies for 20 years, a thesis that hasn’t wavered, whilst a few of its portfolio firms — like Top Golf and repair supplier Tait — all however shut down within the pandemic.

“Originally we got excited about that thesis because digital was disrupting entertainment, and live was something that couldn’t be disrupted,” Scott Marimow, managing director at Providence, informed Insider. “There’s going to be an enduring demand for people to get together in person in large groups to consume entertainment.”

“Live events are having a moment as consumers want to get out and about,” stated John Harrison, Americas Media & Entertainment lead at EY. “In PE, VC, there’s a thesis that with the growth of live events, there’s an ecosystem of putting on these events, so there’s an investment path: production, catering, lighting, advertising solutions, data and analytics.”

Of course, there is not any assure the great occasions will final. High ticket prices for marquee occasions are already pinching concert-goers. If the economic system slips into recession, and folks in the reduction of on these and different expenditures, the businesses servicing occasions may get squeezed, together with promoters and expertise, Harrison stated.

But over the previous few years, established and upstart traders have seized the chance to capitalize on stay occasions spending, which is outpacing media and leisure spending total. PWC projects stay occasions income hitting $68.7 billion in 2024, up from $66.6 billion in 2019.

Insider recognized 9 companies, listed alphabetically, which can be making vital investments in stay entertainment-related firms.

Ardian

Ardian is a Paris-based personal fairness agency, based in 1996, that manages $96 billion in belongings throughout Europe, Asia, and the Americas. In 2019 it acquired Audiotonix, which makes music-mixing consoles which were used on excursions by bands like Coldplay and U2, in a deal valuing the startup at about $900 million.

Audiotonix, by way of its model, DiGiGo, in October acquired Fourier Audio, whose software program is used on Broadway theater productions and music excursions. Ardian is on the hunt for extra offers, the corporate informed PEHub. The agency’s thesis is constructed across the return of stay occasions but additionally the concept of bringing premium companies to them — Audiotonix is without doubt one of the firms offering tech to Las Vegas’ new leisure venue, Sphere.

Bluestone Equity Partners

Founded in early 2023 by ex-NBA exec Bobby Sharma with an preliminary fund of $300 million, Bluestone has invested about $30 million in PMY Group, which gives technical design and administration for sports activities venues like SoFi Stadium and New York’s Citi Field; and about $20 million in RWS Global, which does design, casting, and programming to create occasions for shoppers like Apple and Holland America Line.

Sharma’s view is that persons are inserting higher worth on bodily experiences, but additionally sharing them digitally with their networks. “Businesses and rights-holders that recognize and nurture that reality, and provide, serve, host, or enhance such social experiences within it, will win,” he stated.

Fiume Capital

The Las Vegas-based PE agency has been making strikes into sports activities and media. In 2022, it and PE agency Juggernaut Capital Partners acquired Thrill One Sports & Entertainment, recognized for motion sports activities occasions and associated leisure like “The Dude Perfect Show.” The Wall Street Journal reported the deal was valued at $300 million. Fiume and Juggernaut had earlier invested in 3 Step Sports LLC, a youth sports activities membership and occasion operator in Wilmington, Mass.

Folk Media Group

Former CBS govt Eric Kuhn and former Microsoft govt Tre’ Scott simply founded the corporate to put money into manufacturing firms serving stay in addition to filmed leisure. They even have a inventive arm, Folk Productions. Their thesis is that manufacturing has been uncared for by traders, and so they see a chance to again early-stage firms in areas like costume, sound, and manufacturing administration that may assist make premium content material at scale. It hasn’t introduced any investments but, however a partnership with Amplify Pictures, a content material studio that is getting additional into stay productions, could possibly be an indication of issues to return.

L2 Capital

L2 is a PE agency primarily based in Devon, Pennsylvania, and Miami, Florida, that describes its focus as area of interest, founder-led firms. Among its holdings are Family Quest Entertainment, a stay occasion firm targeted on household leisure and schooling. Family Quest is the umbrella for dinosaur exhibit Jurassic Quest and Lego pageant Brick Fest Live, which occur in cities round North America. Family Quest is poised for progress, with plans to increase to extra markets and add extra properties in 2024.

MUSIC

A VC headed by musician and music govt Matt Pincus, MUSIC is targeted on varied components of the music enterprise. It most just lately led a $65 million round in Dice, an occasions discovery and ticketing platform for stay occasions like comedy and drag cabaret. Earlier investments included music-making platform Splice and music monetary companies firm HIFI. Pincus launched his agency in 2019 with Liontree; three years later, he raised $200 million in a relaunch of its partnership with Liontree, with JS Capital Management and Schusterman Family Investments additionally collaborating.

Providence Equity Partners

The private-equity large, together with being a big backer of filmed entertainment, is a giant believer within the companies that assist each filmed and stay leisure. It simply took an undisclosed minority stake in Populous, an structure and design agency whose portfolio consists of Yankee and Wembley stadiums. It’s additionally backed Ambassador Theatre Group, which operates 59 theaters and arenas within the US, Germany, and UK.

Providence believes such investments will proceed to repay, whilst leisure tastes evolve. It additionally sees a chance to profit as venues are constructed and renovated and prolonged into larger leisure districts. “The entertainment might change over time, but it’s going to need the same type of services; they need an agent, they need a venue, they need the gear, they need the infrastructure,” Marimow informed Insider.

Shamrock Capital

The Los Angeles-based funding agency has a protracted historical past of backing media, leisure, and communications companies. Its current offers embody a February 2022 minority progress funding in SaveLive, a music occasions platform targeted on impartial venues, promoters, and the secondary markets that was based by former WME music exec Marc Geiger.

Sixth Street

Alan Waxman’s $74-billion PE agency has turn out to be a big player throughout the sports activities world, with a portfolio spanning groups (Spain’s Real Madrid and the San Antonio Spurs) in addition to stay occasions through Legends, the corporate behind the New York Yankees and Dallas Cowboys luxurious suites.

In 2022, Sixth Street paid $380 million for a stake in Real Madrid’s stadium operations, a 20-year deal geared toward rising the stadium’s income by way of sporting and other forms of occasions.

“We’re very bullish on live events,” Waxman told CNBC. “The one thing we learned during COVID was people actually like to do things … There are a whole bunch of ways to play that.”