Golf in Play: What’s Driving Investment Opportunities
Golf is experiencing a powerful resurgence, driven by rising participation across younger and more diverse demographics, rapid technology adoption and the emergence of new entertainment formats and premium experiences. From lifestyle-focused clubs to tech-enabled venues and shorter, accessible course designs, the industry is evolving to meet modern consumer demands.
Baird recently served as exclusive financial advisor to L.A.B. Golf on its sale to L Catterton, a transaction that underscores how disruptive brands are attracting investor attention and redefining the future of the sport.
In this update, we outline the key drivers that are creating appealing investment opportunities in golf.
- Driving Demand in the Golf Market
The game of golf is growing across demographics, becoming more diverse, inclusive and attracting a younger player base. Total U.S. participation reached a record 47.2 million Americans in 2024, representing an increase of 5% from 2023 and a 38% increase since 2019. The number of female golfers (adult and junior) reached an all-time high of nearly 7.9 million in 2024, a 41% increase since 2019, and the 18-34 age group is now the largest group of on-course players.
These dynamics create opportunities to invest in brands and businesses that are catering to these growing demographics, including lifestyle brands and equipment and accessories providers. As golf’s popularity rises in both investment and consumer interest, we’re witnessing a shift in consumer dynamics. The premium golfer is leading the charge, investing heavily in top-quality experiences and gear, and setting new benchmarks for pricing and value across the category. - Next-Gen Golf Experiences
Technology is transforming the golf experience, from on-course performance tracking to online booking and management systems. These advancements create promising companies that leverage technology to enhance the game. This includes companies that provide golf simulators, data analytics for player performance and platforms that streamline operations for course owners. Newer iterations of golf simulators are including mappable and customizable course terrain and elevation to bring new and existing courses from around the world under one roof. This trend is driven by younger generations who are accustomed to tech-enabled experiences. - Golf-Entertainment Venues
The rise of golf-entertainment venues, such as Five Iron Golf and PinSeekers, reflects a broader trend of blending sports, leisure and social experiences to attract a younger, more diverse demographic. These venues capitalize on experiential spending, offering scalable revenue streams through food, beverage and event hosting, making them attractive for private equity and real estate investors. With continued urbanization and demand for unique social activities, the sector presents significant growth potential, particularly in untapped markets and through tech-enabled gamification innovations. - Upgrading the Clubhouse: New Club Formats Are on the Rise
The repositioning of underperforming daily-fee golf courses into private, amenity-rich clubs is gaining momentum as operators seek to attract higher-spending members and create sustainable revenue models. By incorporating upscale amenities such as fitness centers, dining and wellness offerings, these conversions tap into the growing demand for lifestyle-focused memberships. For investors, this trend presents opportunities to capitalize on asset repositioning, value-add real estate strategies and the premiumization of underutilized properties in affluent or underserved markets. - Growth of Non-Traditional and Shorter Courses
With a focus on accessibility and a faster pace of play, there's a growing trend toward shorter course layouts, such as 9-hole, 6-hole and par-3 courses. These formats cater to busy schedules, provide a less intimidating entry point for new golfers and create more touchpoints for consumer spending. New golf-entertainment venues can benefit from their close proximity to the player throughout the golfing experience, enabling more frequent and seamless sales of food, beverages and merchandise. This model not only enhances the customer experience but also drives higher per-visit revenue. They also offer a way to make golf more sustainable and less land-intensive, which is appealing for developers and investors.
Explore Select Golf Transactions
The Baird Global Investment Banking team provides cross-sector collaboration and industry coverage to clients in the Golf, Leisure & Enthusiast space. Interested in learning more? Connect with our team.
