Hamburg-headquartered private bank Donner & Reuschel has announced the launch of a professional sports fund, aimed at offering investors access to profits from media rights, private equity and real estate in the sports sector.
The fund is launched in collaboration with Munich-based Sports Advisory International, whereby Robert Niemann and Martin Wolf, who are both working for Sports Advisory, act as advisors to the fund.
According to Donner & Reuschel, 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.
The fund invests in the commercial areas of sports with a focus on football and entertainment rights ranging from broadcasting rights, equity investments in clubs and equipment suppliers, and sports properties such as stadiums and training centres for top athletes.
“The sports and entertainment sector will further benefit from digitalisation, as media rights, data and eSports are the big growth drivers of the future” explains Wolf.
“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 Donner & Reuschel.
Donner & Reuschel is assuming the role of both the custodian and the exclusive sales partner, while HANSAINVEST is acting as the capital management company.
Being exclusively aimed at institutional investors, the minimum subscription is €1m, the fund targets a medium term fund volume of €200m at an annual return of 8% before costs, it’s duration is set until the end of 2028.
The new fund is one of the first vehicles offering German investors exposure to the asset class, similar attempts of predecessors, such as the UniSector Sport fund launched by Union Investment in 1998 were closed after failing to attract sufficient investor demand.