TPG Inc. and Leonard Green & Partners are assessing interest in a potential sale of Troon Golf, the Scottsdale, Arizona-headquartered operator and manager of golf clubs, according to persons familiar with the matter. The firms have engaged investment banks to canvass potential buyers, the people said.
Those sources indicated that a sale of Troon could fetch a price in excess of $2 billion. However, they emphasized that no final decision has been reached and the private equity owners may choose to keep the business instead of moving forward with a transaction.
TPG made its investment in Troon in 2021 alongside Symphony Ventures, the investment fund associated with professional golfer Rory McIlroy. Troon traces its origin to a single facility opened in 1990 and today characterizes itself as one of the world s largest professional club management companies, providing services to more than 825 locations.
The company operates and manages a number of well-known golf properties, including Kapalua Resort in Hawaii and Tobacco Road in North Carolina. Those assets form part of Troon s portfolio as the private equity owners test the market for potential acquirers.
Earlier this month, Invited Clubs, identified as one of Troon s principal competitors, was sold by Apollo Global Management Inc. to KSL Capital Partners for a reported $3 billion. That transaction, cited by the sources, provides a recent comparable in the club-management and leisure sector, though the people stressed that Troon s owners have not committed to selling.
Summary
TPG and Leonard Green have instructed banks to solicit interest in Troon Golf. A possible sale could value the company at more than $2 billion, but the owners have not yet decided to proceed with a sale and may retain the company.
Key points
- Private equity owners TPG and Leonard Green have begun outreach to potential buyers through investment banks - impacting the private equity and leisure sectors.
- Sources suggest Troon could be worth in excess of $2 billion, though that valuation is indicative and no sale is finalized - relevant to asset valuation and M&A activity.
- Troon manages notable courses such as Kapalua Resort and Tobacco Road and serves over 825 locations, underscoring its scale in club management.
Risks and uncertainties
- No final decision has been made to sell Troon; owners may opt to retain the business - uncertainty for prospective buyers and investors in leisure assets.
- Market interest and valuation are being solicited but remain subject to negotiation and due diligence - outcomes could vary and affect private equity returns.
- Recent comparable transactions, such as the reported $3 billion sale of Invited Clubs to KSL by Apollo Global Management Inc., provide context but do not guarantee Troon s final sale terms.
For now, Troon remains under the ownership of TPG and Leonard Green & Partners while banks field inquiries from potential acquirers. A definitive path - sale or retention - has not been chosen.