US-based obstacle course race company Spartan Race has received an undisclosed amount from local investment manager Jim Pallotta’s firm.
While the size of the deal was not disclosed, a regulatory filing suggests that a sum upward of $4.25m was invested by Pallotta’s Raptor Consumer Partners (RCP), the private equity division of Raptor Capital Management, which works in partnership with creative agency Lipman on deals.
The investment will be made through one of Raptor’s venture funds. Raptor has invested in a number of firms over recent months, including electronic commerce firm Movenbank, gaming monetisation firm MediaSpike, and ticket reseller Ticket Evolution, through Raptor Ventures. The investment arm is seeking to raise $75m for its first fund.
The funding will be used to expand Spartan’s operations, and to establish a corporate headquarters in Boston. Spartan will also receive support from Raptor Accelerator and Raptor Sports Properties.
Pallotta is no stranger to investing in sports. In 2002, he invested in Boston’s basketball team the Celtics, and also recently invested in Italian football team AS Roma.
Pallotta said: “At Raptor, we always look to propel our investments by leveraging the extensive network and expertise of Raptor Consumer Partners, Raptor Accelerator and Raptor Sports Properties, and we believe tremendous opportunities lie ahead for Spartan Race. I am excited to partner with Spartan Race to bring such high-energy, top-rate sporting events to the Boston community.”
RCP managing director John Burns, who will join Spartan’s board of directors, said: “The sport of obstacle racing is experiencing unprecedented growth and we are thrilled to partner with Spartan Race, a leader in this dynamic market.”
Spartan Race offer athletes a more military approach to training, which involves mud, obstacles, and barbed wire. It has around 50 employees, and has so far attracted two million competitors a year to one of its 40 annual events.