A sports investment fund that previously was only available to institutional investors is now available to advisors and their high-net-worth clients, iCapital announced.
The Avenue Sports Opportunities Fund is being offered through a partnership between iCapital and Advisors Asset Management. The fund is designed to provide a recession-resistant diversifier for high-net-worth investors’ portfolios, the companies said.
The Avenue Sports Opportunities Fund has a low correlation to other assets, which creates a potential hedge against market volatility, they said. The alternative investment also should be resistant to recessionary trends because there is consistent demand from sports fans, iCapital said.
Advisors Asset Management provides investment solutions, and iCapital is a global fintech platform for alternative investments. The new fund is managed by Avenue Capital Group and now is available on iCapital Marketplace. It was launched in October for institutional investors.
The fund was co-founded by Marc Lasry, chairman, CEO and co-founder of Avenue Capital Group. In addition to being an established credit investor, Lasry is the former co-owner of the NBA's Milwaukee Bucks. Lasry, and the ownership group of the Milwaukee Bucks, are credited with building a new arena that helped revitalize downtown Milwaukee, and reinvigorating a losing franchise.
Lasry has recruited current and former pro athletes to serve as advisors to the fund.
Investments by the fund thus far have included stakes in The Bay Golf Club in TGL, a new San Francisco-based golf league formed by Tiger Woods and Rory McIlroy; the acquisition of the New York Mavericks of the Professional Bull Riders Team Series league; a significant minority stake in Trackhouse Entertainment Group, a motor sports business that owns a NASCAR Cup Series team and a MotoGP team; debt and equity investments in Ipswich Town Football Club, which competes in the English Premier League; and an investment in PGA Tour Enterprises, the for-profit commercial arm of the PGA Tour, the firms said in a press release.
“The fund aims to produce attractive, risk-adjusted returns through capital solutions to a wide variety of sports teams, owners and leagues, mainly in North America and Europe,” iCapital said. “It also will provide growth capital to emerging sports with significant growth potential, as well as invest in equity and debt opportunities within women’s sports.”
The core areas of investment focus within the Avenue Sports Opportunity Fund include debt and preferred equity, minority stakes in established leagues and sports businesses, and control ownership opportunities in emerging leagues in women’s sports and in other sports properties, according to iCapital.