UK sportswear brand Castore has secured a £145 million ($183.1 million) investment in a funding round led by the Raine Group, the US financial advisory firm.
That company is investing through its recently launched growth equity fund, Raine Partners.
Private equity firms Hanaco Ventures and Felix Capital also participated in the investment through their respective growth funds.
The £145 million investment round will “support Castore’s efforts to continue to disrupt the premium sportswear market and global team sports landscape.”
In addition, the Manchester-based brand said the capital raise will enable it to “further develop the breadth and reach of its mainline product range.” Castore will also continue to invest in staff and infrastructure systems.
Private banking company Rothschild & Co is acting as the sole financial adviser to Castore on the transaction, while law firms Allen & Overy and Addleshaw Goddard are legal advisors to the sportswear brand.
Castore, which launched in 2016, is headed up by brothers Tom and Phil Beahon and previously raised £3.2 million from private investors in 2018 and £7.5 million in 2020.
Following the latest funding round, the sportswear brand, which is backed by British tennis star Andy Murray, is valued at £950 million.
Tom and Phil Beahon said: “We are delighted to have secured the backing of highly reputable equity partners that will add significant value to all aspects of Castore’s business model – our team relationships, our sportswear brand, and our omnichannel retail operations.
“We are confident these are the right investors to take us to the next stage of our growth, who share our passion for high-quality sports apparel, and, in addition to capital, will bring expertise and access to new markets.”
Castore’s founders continued: "This investment will give us the financial firepower to invest in our supply chain and enhance our data analytics capabilities. There is huge demand out there for Castore and this will enable us to continue to deliver great products, service, and choice to our sports industry partners and consumers, and to take on the established players in the global sports apparel market.”
Castore has numerous sponsorship deals across sports, including soccer, Formula 1, and cricket.
It has kit supply agreements with English Premier League soccer clubs Newcastle United (which will end after this season), Aston Villa, and Wolverhampton Wanderers, Scottish giants Rangers, and Spain’s Athletic Club, as well as tie-ups with the McLaren and Red Bull Racing F1 teams, and the England and Wales Cricket Board.
However, the company recently terminated kit supply deals with the West Indies and South Africa cricket boards, to shrink its portfolio.
Meanwhile, the Raine Group, which is active in the sporting acquisitions and mergers business, recently raised $760 million for its new sports-centric fund, bringing its total assets under management to almost $4 billion.
The firm said its new Raine Partners investment fund “will invest in growth-stage technology, media, and telecom companies, with a particular focus on sports, media, entertainment, and gaming.”