Photo by Justin Setterfield/Getty Images
Two Circles, a marketing firm owned by Bruin Capital, is nearing a deal to be 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 said to be far along after a lengthy discussion and could be announced as soon as this week. Two Circles and Bruin Capital declined to comment. Charthouse didn’t immediately respond to a request for comment.
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 nearly 68%. 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.
Two Circles was founded in 2011 by Gareth Balch, its current CEO and a former middle-distance runner. 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, including in retail sports betting chain Coral.
