Andrew Costello - ACG Arenas

Location: McKinney , Texas

Who We Are ACG Arenas is a destination-scale family entertainment company on a mission to enhance the human experience through a category-defining venue concept. We are developing a 250,000 SF flagship location in McKinney, Texas -- a single destination that combines a wide range of best-in-class attractions under one roof, paired with a membership model built for real affordability and long-term guest loyalty. The family entertainment industry is fragmented by design. Families are forced to choose between a trampoline park here, a go-kart track there, an arcade somewhere else -- each charging full price, none delivering a complete experience. ACG Arenas eliminates that friction entirely. One destination. One membership. Everything included. What We're Building The McKinney flagship is a two-story, 250,000 SF playable space on an 18.61-acre site, purpose-built to serve as the proving ground for a national rollout. The venue integrates a broad mix of active, social, and competitive attractions alongside food and beverage, event spaces, and a member experience layer that drives repeat visitation in a way the industry has never seen. At the core of the guest experience is a proprietary behavioral progression system -- a deeply gamified retention engine that rewards engagement, builds habits, and creates compounding loyalty over time. This system is not a loyalty points program. It is a structural feature of the experience itself, designed to make every visit more meaningful than the last and to keep families returning month after month. Our membership program is built around four tiers designed to serve a wide range of households, from casual visitors to founding members who want to be part of the ACG Arenas story from day one. Founding membership options are available exclusively during the pre-opening window, creating a time-sensitive entry point for early guests and early investors alike. Where We Are ACG Arenas is in active pre-development on the McKinney flagship with a targeted Q1/Q2 2028 opening. Key milestones already achieved or underway include: Site control negotiations are active on our 18.61-acre McKinney parcel, with a purchase and sale agreement in process with the landowner. A lending facility letter of intent has been accepted, establishing a foundational debt component within our broader capital structure. A verbal equity commitment has been received from a family office targeting early 2027, representing meaningful institutional validation of the concept and the team. Tranche 1 of our capital raise is actively closing, with proceeds designated for pre-development, site control, and early design and engineering work. A senior leadership team spanning operations, brand, creative programming, people, and expansion is fully assembled and engaged, bringing decades of combined experience across entertainment, hospitality, and consumer brand development. What We're Looking For ACG Arenas is seeking accredited investors and institutional capital partners -- including family offices, private equity, and high-net-worth individuals -- who share our conviction that the family entertainment industry is overdue for a category leader. Our capital structure is designed to accommodate flexible participation across multiple tranches, from early-stage pre-development capital through construction and into our national expansion phase. We are open to both equity and debt structures and welcome conversations with investors who bring not only capital but strategic relationships in real estate, entertainment, retail, or consumer markets. The Vision McKinney is the beginning. ACG Arenas is designed from the ground up to scale, with a long-term national footprint of 316 locations and a replicable model built on the same membership infrastructure, progression system, and operational playbook at every site. We are not building a venue. We are building the defining brand in American family entertainment. Returns and Exit Strategy ACG Arenas is structured to deliver investor returns through two compounding mechanisms -- recurring annual distributions and a long-term equity buyback -- rather than relying on a single liquidity event. The ACG Distribution Fund is the primary return vehicle. Each operating location at full maturity contributes 17.25% of its annual EBITDA into a centralized fund. Of that accumulated balance, 30% is distributed annually to equity holders in proportion to ownership, while the remaining 70% compounds inside the fund -- growing its net asset value and funding future expansion without requiring additional external capital raises. First investor distributions are targeted for Q1 of Year 4 following the flagship opening. To reinforce founder alignment during the early operating years, 50% of distributions otherwise allocable to the Founder are redirected toward investor capital recovery until investors have received cumulative distributions equal to their total invested capital. This mechanism accelerates return of capital without impairing operations. The long-term exit mechanism is a structured equity buyback beginning in Year 10. As the platform scales toward its national footprint, the Fund's accumulated balance -- built on the EBITDA contributions of a multi-location platform -- is deployed to repurchase investor equity at a defined pricing floor. By Year 10 under the base case scenario of 21 to 24 operating locations, the platform is projected to generate $525M to $600M in annual EBITDA, creating a buyback capacity that reflects the full enterprise value of the network rather than any single asset. Illustrative IRR projections across scenarios range from approximately 22% in a conservative case (12 to 15 locations) to 33% to 38% under the full expansion plan, inclusive of cumulative annual distributions and Year 10 exit value. Returns are proportional to final agreed equity percentage and actual results will vary. Investors in ACG Arenas are not betting on a single exit. They are buying into a platform designed to pay them along the way and buy them out at scale. A fully built out Data Room is ready for diligence with interested and capable parties.