Jordan Spieth sold Mike Trout and Tiger Woods to Rory McIlroy.
Put another way, Invited has sold its golf course management division to Troon Golf. Spieth is an investor in and ambassador for Invited, the owner-operator of more than 150 golf clubs in North America, while McIlroy has a stake in Troon, a third-party manager of over 700 golf courses and other recreational facilities. The 18 courses headed to Troon include Trout National-The Reserve, which is part-owned by the Los Angeles Angels outfielder and laid out by Tiger Woods’ firm TGR Design.
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Other parties to the sale include Apollo Global Management, which owns Invited, and TPG Capital, an investor in Troon. Terms of the deal were not disclosed, but it includes a strategic relationship that will allow the two companies to share information on potential clients and give the more than 400,000 invited members access to tee times and discounts at Troon’s resort and daily-fee courses.
Anyone ranking unexpected deals between big names in golf in the month of June will list this one as a distant second, but it does mark a significant change in direction for Invited.
“We had a vision of multiple operating divisions, including course management,” David Pillsbury, Invited’s CEO, said on a call. “We were aggressive and did a good job building it but a lot has changed, and in the last 18 to 24 months, we analyzed our ancillary businesses and decided to focus on what we do best—own and operate private clubs.” As part of the deal, two key executives will move to Troon, which should ensure that the 18 clubs do not see any disruptions under new management.
For Troon, the move spurs its expansion, since its only options for growth are signing courses one-by-one or acquiring smaller competitors. In fact, Troon CEO and president Tim Schantz says the company is on the verge of announcing an additional acquisition, its 13th since 2007. “We’re always looking for opportunities,” he said on a call. “Since our latest PE entry, we’ve continued on a path to build on our position in the market with the goal of becoming the industry leader.”
That entry occurred in 2021, when TPG Capital and McIlroy, through his Symphony Ventures fund, bought in, joining Leonard Green & Partners as major investors.
Apollo purchased Invited, then known as Club Corp., in 2017 in an all-stock deal valued at $2.2 billion, and there have been consistent rumors since then that the fund would take the company public once again at a value as high as $4.5 billion.
“In general, going public is often part of the private equity playbook,” Pillsbury said when asked about the possibility, “but as far as our specific plans, we don’t comment on our cap structure or ownership strategy.”
He did, however, note the current golf surge, which has seen growth in rounds played, equipment sales and off-course play at facilities such as Topgolf, Drive Shack or BigShots (which is owned by Invited). Unlike the post-Tiger boom of the late 1990s, this one is not driven by a singular personality but by a cultural shift that started during the pandemic and has so far proven sustainable.
“There are opportunities in this space,” Pillsbury said. “Golf used to be like skiing, there was so much friction to participate, but that’s all gone. Now, with these off-course facilities, all you need is a credit card and an hour, so demand is surging but there’s a limited supply.”
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