(Bloomberg) -- Arctos Partners LP is buying a minority stake in Paris Saint-Germain, the football club home to superstar Kylian Mbappe, in a deal that shows American investors are continuing to bet on the valuation of European sports teams.
Paris Saint-Germain’s Qatari owners have agreed to sell a 12.5% minority stake to Arctos at a valuation of about €4 billion ($4.3 billion), people familiar with the matter told Bloomberg. That’s a steep increase from 2011, when Qatar Sports Investments bought a 70% stake for €70 million.
PSG said in a statement on Thursday that the arrival of the new shareholder would help the club fund its international presence, including in the US.
Read More: The Great Billionaire Takeover of Europe’s Football Giants
The club has grown into an international brand under Qatari ownership, replete with a 4,400 square-foot (409 square-meter) store on Fifth Avenue.
PSG spent heavily on costly stars like Neymar and Lionel Messi that raised its profile, although it has so far failed to win a European Champions League title, its main sporting target.
The Arctos investment will also help the club fund investment in its infrastructure, such as upgrading its stadium and building a new training ground, PSG said. The club has been looking to renovate and expand the Parc des Princes, which is currently the subject of a fight with the city of Paris authorities.
Arctos also has a stake in the Boston Red Sox and Liverpool Football Club owner Fenway Sports Group, and recently bought a minority stake in the Aston Martin team.
Qatar Sports Investments has also expanded its portfolio of sports investments. It recently bought a minority stake in Portugal’s SC Braga, and is the owner of the Premier Padel professional tour.
Sign up for Bloomberg’s Business of Sports newsletter for the context you need on the collision of power, money and sports, from the latest deals to the newest stakeholders. Delivered weekly.
--With assistance from David Hellier.
©2023 Bloomberg L.P.