On January 14, RPM Capital Partners disclosed a new position in StubHub Holdings (STUB +4.17%), acquiring 535,850 shares worth $7.25 million.
What happened
According to a SEC filing released Wednesday, RPM Capital Partners, LLC initiated a new position in StubHub Holdings (STUB +4.17%), acquiring 535,850 shares. The estimated value of the stake was $7.25 million at quarter-end.
What else to know
The new position, just one of two reported in the filing, represents 6.36% of RPM Capital Partners' reported U.S. equity assets as of December 31,.
Top holding after the filing:
- Semrush: $106.81 million (93.6% of AUM)
- StubHub: $7.25 million (6.4% of AUM)
As of Thursday, StubHub shares were priced at $15.19, down about 35% from their IPO price of $23.50 in September.
Company overview
| Metric | Value |
|---|---|
| Price (as of Thursday) | $15.19 |
| Market Capitalization | $5.58 billion |
| Revenue (TTM) | $1.83 billion |
| Net Income (TTM) | ($1.32 billion) |
Company snapshot
- StubHub offers a global online marketplace for secondary ticket sales across sports, concerts, theater, and live events, generating revenue primarily from transaction fees on ticket sales.
- The company operates a platform-based business model, facilitating connections between ticket buyers and sellers and monetizing through commissions and service charges on each transaction.
- It targets event-goers, fans, and ticket resellers worldwide, serving both individual consumers and professional brokers in over 200 countries.
StubHub Holdings is a leading technology company specializing in secondary ticketing for live events. The company leverages its scale and digital platform to facilitate millions of ticket transactions annually, providing broad access to events and a seamless user experience. Its competitive advantage lies in a robust global marketplace, strong brand recognition, and a diversified event portfolio.
What this transaction means for investors
This move matters because it shows where RPM Capital Partners is willing to concentrate risk after a bruising IPO cycle, and what it’s willing to ignore. With StubHub now making up more than 6% of reported U.S. equity assets and making up one of just two reported positions, the firm is effectively saying volatility is noise when the underlying marketplace economics remain intact.
StubHub’s latest quarter helps explain the appeal. The company delivered $2.4 billion in gross merchandise sales, up 11% year over year, and $468 million in revenue, up 8% and representing roughly 19% of GMS. Adjusted EBITDA rose 21% to $67 million, even as GAAP results were skewed by a one-time $1.4 billion stock-based compensation charge tied to the IPO. Strip that out, and operating momentum looks steadier than the share price suggests. Plus, net leverage fell to 3.9 times adjusted EBITDA after $750 million in debt reduction, materially improving balance sheet flexibility.
As mentioned, RPM runs an unusually concentrated book, with Semrush accounting for more than 90% of assets. Adding StubHub as the only other position signals selective expansion, not style drift. That contrasts with other managers trimming exposure to rate-sensitive or credit-heavy vehicles during the same period. Ultimately, the takeaway isn’t about catching a bounce. It’s about whether a scaled, fee-based marketplace with improving leverage can compound once post-IPO distortions fade.
