Donner & Reuschel Makes Investments In Professional Sports Possible
Top-level professional sports is now an investable asset class for the first time – innovative fund takes advantage of long-term growth trend in global sports and invests in media rights, private equity and real estate.
Few other business sectors have grown as fast in recent years as professional sports. In football, for example, both the value of the European professional clubs and the prices for broadcasting rights have increased by around 9% p.a. since the turn of the millennium. Investors can now participate in this billion-euro business for the first time.
The newly launched sports fund invests in a non-correlating asset class combined with a unique growth industry. “The sports and entertainment sector will further benefit from digitalisation, as media rights, data and eSports are the big growth drivers of the future,” says Martin Wolf, who acts as advisor to the fund together with Robert Niemann, both from Sports Advisory International in Munich, Germany. “With this innovative idea, we are giving investors access to a brand new asset class that was previously only available to private equity firms and corporations,” adds Thomas Ronfeld, head of Primary Markets at the bank Donner & Reuschel.
The fund invests in the commercial areas of sports with a focus on football and entertainment rights. For example, this includes broadcasting rights, equity investments in clubs and equipment suppliers, and sports properties such as stadiums and training centres for top athletes. Donner & Reuschel is assuming the role of both the custodian and the exclusive sales partner, while HANSAINVEST (Hanseatische Investment-GmbH, Hamburg, Germany) is acting as the capital management company. In the medium term, a fund volume of EUR 200 million is targeted. The minimum subscription amount is EUR 1 million. The target return at the fund level (IRR) is 8% p.a. before costs, and the duration of the fund is until the end of 2028.