Sweat Equity. Jason Kelly

to cover a golf tournament in 1979. His 10-page story drew interest, and more competitors. In 1980, ABC’s own icon —Wide World of Sports– televised parts of the race. Long before viral videos, most Americans had only a handful of channels to watch. The Ironman became must-see TV, especially when what became the championship moved from Collins’ original course to Kona, where the stark lava fields cyclists pedaled through added an element of visual drama.

      The drama that helped cement the event’s reputation came in 1982, when 23-year-old Julie Moss, a graduate student competing to complete a thesis, led for much of the race and then collapsed yards from the finish line. Her minutes-long lead evaporated and she was passed by the eventual winner, Kathleen McCartney, also competing for the first time at the Ironman distance. Moss’ determination to finish – she literally crawled to the finish line – was broadcast on national television.

      The world record, set in 2011, is 8 hours, 3 minutes, and 56 seconds. That’s more than three-and-a-half hours faster than Haller’s inaugural time. (Haller himself posted a 10:58 during the second Ironman, knocking 47 minutes off his first attempt.3)

      His first time in the race, Du Bey posted a more-than-respectable 10 hours, 15 minutes. “As soon as I finished, I thought, ‘I’ve got to get faster,’” he says. “You’re in it like an addiction.”

      Meanwhile, he’d gone to work for Providence Equity Partners, a Rhode Island–based private equity firm specializing in media and telecommunications deals. Its New York office sits in the iconic 9 West 57th building, also home to the buyout firms KKR and Apollo. Providence’s investments include Univision and Warner Music; the firm has assets under management in excess of $40 billion.

      As Du Bey got deeper into the world of Ironman, he set different aspects of his daily life on a happy collision course. Du Bey rightly identified Ironman as an iconic brand, a modern marvel of branding, and, it turns out, intellectual property management. What other company inspires customers to tattoo themselves with its logo?

      That logo is known as the M-Dot because it resembles an M (meant to resemble a body) and a circle representing the head. World Triathlon Corp., the parent company, trademarked the logo, the word Ironman, and even the combined mileage in an Ironman (140.6) and a half-Ironman (70.3). Both Ironman finishers, tattooed and otherwise, fiercely protect the brand. And so do WTC’s lawyers. That was part of the appeal for Jesse Du Bey, investor.

      Du Bey was able to complement his investment pedigree with a stellar Ironman resume. He first qualified for the Ironman World Championships, held annually in Hawaii, in 2007. That race was, he says, “so difficult I was literally hallucinating, which is not uncommon.” He vowed to return to the island of Kona, which is a one-word Holy Grail, like “Boston” for marathon runners. He made it back in both 2008 and 2009, after training “like a professional,” dropping weight, and reducing his time. In 2009, he posted a 9:28, making him the seventh-fastest American Ironman and placing him in the top 100 overall, including professionals.

      His initial approach toward buying Ironman was subtle; he knew it would be a long game. He flew to its headquarters in Tampa armed only with five PowerPoint slides laying out what he proposed to do, returning half a dozen times to bolster his internal pitch. His bosses at Providence “got it fast,” he says. “They all ride bikes and do competitive stuff.” Like Du Bey, the broader push toward competitive endurance sports wasn’t a theoretical trend to the other investors. They were living it themselves.

      In 2008, Ironman was in an era of rapid growth, along with triathlons in general. From 1998 to 2014, membership in USA Triathlon, a requirement to participate in any sanctioned triathlon, grew more than fivefold, to 550,000 from 100,000.4 Du Bey discovered the popularity didn’t wane in the economic crisis, supporting the theory that tough financial times may actually bolster participation as we look beyond the stress of the office for satisfaction.

      Triathlons also were reaping the rewards of a populace that had grown up running and trudging to the gym and was bored and dissatisfied. Cyclists, too, were hemmed in to some extent by the constant one-upsmanship of the latest and greatest bike. Cycling clubs can be cliquey.

      By grabbing the public imagination, Ironman made the concept of swimming, biking, and running together appealing. As shorter distances became more popular and prevalent, people who might not otherwise have tried it took the chance, goaded by friends and family. Some raised money for charity, others just wanted to challenge themselves. There’s also a return-to-childhood element for many of us who grew up riding bikes around the neighborhood and spending summers at pools, lakes, or the beach. Add in running – among the most basic human pursuits – and it has a strong appeal.

      Du Bey contends the triathlon’s appeal rests largely on a simple but not necessarily obvious element: No one is good at all three sports, certainly in the beginning, and even after a number of races. The need to ask for, and give, help lends an air of collegiality to the triathlon that doesn’t exist in large measure in the sports individually. The sum of the parts makes the triathlon an endeavor you simply can’t do alone, at least happily.

      “Everyone needs to learn something because no one comes from a complete running, swimming, and biking background,” Du Bey says. “Even if they did, they need to learn training, nutrition, and transitions. This creates a culture of learning and sharing. The nicest vibe you’ll ever get in competitive sports is in the start corral at a triathlon. And the difficulty of the event and the primal thing about the suffering – it creates a tribal community. Respect is earned through the effort, the personal breakthroughs, the pain, the positivity. That’s what you need for a viral trend: real humanity.”

      Providence aggressively expanded Ironman, from a handful of races to 200 annually, and growing its staff more than tenfold, to 250 from 21. Part of the expansion was in variety, specifically in the so-called 70.3 distance, half of the traditional Ironman across the swim, bike, and run. Seven years after its purchase, Providence entertained offers and the winning bid emerged from a country that had never staged an Ironman.

      In August 2015, Providence sold World Triathlon Corp. to China’s Dalian Wanda Group for $650 million plus the assumption of debt, reportedly valuing the entire company at roughly $900 million.5 At that price, Providence quadrupled its money over seven years, according to published reports, a spectacular return even in the high-flying world of private equity.

      The Wanda Group bought the company with an eye toward even more aggressive international expansion, especially in its home country. A Wanda executive said at the time of the purchase that only about 10 °Chinese had ever participated in an Ironman to date.

      Du Bey, as an investor, has remained focused on businesses that broadly have the same characteristics as World Triathlon. In 2013, he left Providence (but remained on the World Triathlon board) to start his own private equity firm, Orkila Capital. Orkila seeks out investments where experience and media can coexist and accelerate the other, a concept Du Bey saw play out vividly as an Ironman, and an Ironman investor. He watched the power of the brand manifest itself in actual people doing something physically together, and the business opportunities that come from that collective interest. He’s invested in the Webby Awards (the Oscars of the Internet) and music festivals, among other things – all of the assets focus on, Du Bey says, “investments focusing on experiences, content and products that inspire real passion and joy.”

      Triathlons, and the Ironman deal, clearly changed Du Bey, deepening him, he says. He started the Du Bey Family Foundation, which supports sick children with money he raises through races. “I think this is true for lots of endurance athletes – the sport brings them to an emotional place where they want to be better and help others. This is a key cause marketing factor driving the industry.”

      And in the wake of the World Triathlon sale, he’s introspective and nostalgic in a way that’s surprising in the world of deal making. “The best thing about identifying and leading the Ironman deal was that it felt important, like it might be the project of a lifetime,” he says. “That is also the worst thing about it – I don’t know how I’ll ever find a deal I care so deeply about again.”

      Du

3

Blake Whitney, “Ironman’s First Champ, Gordon Haller, Looks Back 25 Years,” Active, October 20, 2003, www.active.com/triathlon/articles/ironman-s-first-champ-gordon-haller-looks-back-25-years.

4

Kate Lewis, “Is Rapid Growth Endangering the Ironman and Endurance Sports?” Glideslope Runway Blog, October 14, 2014, www.theglideslope.com/runway/is-rapid-growth-endangering-the-ironman-and-endurance-sports/.

5

Kevin Helliker, “Ironman to Be Acquired by China’s Dalian Wanda,” Wall Street Journal, August 27, 2015, www.wsj.com/articles/ironman-to-be-acquired-by-chinas-dalian-wanda-1440642571.