Troon receives investments from TPG and Rory McIlroy to fuel growth

by | Nov 15, 2021 | Golf Clubs

Troon, the leading provider of golf and club-related leisure and hospitality services, today announced that TPG Capital, the private equity platform of alternative asset firm TPG, has reached a definitive agreement for a significant strategic investment in the company signed. TPG Capital will be joined by Symphony Ventures, the investment fund of professional golfer Rory McIlroy, who has agreed to invest in the company in partnership with TPG. The new investment provides Troon with additional capital, resources and expertise to expand its market leadership position. Existing investor Leonard Green & Partners (“LGP”) will keep a significant investment in the business.

“Today’s announcement is an exciting milestone for our company and we are incredibly proud to welcome TPG and Rory to the Troon family,” said Tim Schantz, Troon CEO. “Golfers are at the heart of everything we do at Troon, and over the years we’ve built a company that combines in-depth industry expertise with hospitality-grade customer service to help our customers deliver great experiences to their customers, To create members and guests. The investment by TPG, a leading investor and business builder, is a testament to the quality and strength of our offering. We look forward to working with you and the LGP team to further accelerate our growth while providing even more resources to our valued customers and partners. “

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Troon currently provides operational, management and advisory services to more than 620 golf and recreational facilities worldwide. Troon’s services can be tailored to the specific needs and strategic direction of each location, from agronomy and course development to membership sales and marketing to community association management. In addition to its sub-management offerings, Troon owns or leases more than 50 golf courses that it operates directly, including the company’s flagship, Troon North Golf Club in Scottsdale.

“With its impressive size and operational expertise, Troon has developed a trusted brand that delivers differentiated value to its customers and great experiences for golfers everywhere,” said Paul Hackwell, Partner at TPG Capital. “We are excited to be working with this great group of investors, operators and experts to help Troon reach its next level.”

“Troon offers the gold standard for upscale golfing experiences and is recognized by golfers and clubs alike for its high quality courses and leading management solutions,” said Jeff Rhodes, Co-Managing Partner of TPG Capital. “The company is well positioned to expand its leadership in the industry at a time when both new and veteran golfers are spending more time on the course.”

“I am excited to invest in the Troon business as it continues to offer great golfing experiences,” said McIlroy. “You really understand what makes golf so special.”

TPG has extensive experience in the travel and leisure space and has invested in dynamic brands such as Airbnb, Life Time Fitness and Viking Cruises that are capitalizing on the long-term consumer experience trend. The investment also reflects TPG’s history and expertise in the enterprise services sector, where the company has experience of partnering with vertical market leaders like Troon to enhance their value propositions and accelerate growth.

“It has been a privilege for LGP to be part of the Troon family for the past four years,” said Kris Galashan, partner at LGP. “We worked closely with management to accelerate both growth and job creation. During our partnership period, Troon has grown its workforce from approximately 13,700 to 24,400 and the number of facilities it manages from nearly 300 to over 620. We are incredibly excited to work with TPG, the management team and Rory in the next phase of the company’s growth. “

The transaction is expected to close in December and is subject to regulatory approvals and other customary closing conditions. The terms of the transaction were not disclosed. Moelis served as financial advisor to Troon and LGP, and Latham & Watkins served as legal counsel. Deutsche Bank acted as financial advisor to TPG Capital and Kirkland & Ellis acted as legal advisor.