November 22 – Private German bank Donner & Reuschel is launching a football and entertainment fund that will focus invest on media rights, private equity and real estate.
The bank has identified broadcast rights, equity investment in clubs and equipment suppliers, and sports properties such as stadiums and training centres, as key areas.
It says that: “In the medium term, a fund volume of €200 million is targeted. The minimum subscription amount is €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.”
Donner & Reuschel will manage the money and will be the exclusive sales partner for raising the fund’s capital. Hansainvest will be the principal in terms of managing the capital investments.
The bank points to the value of European professional clubs and the price of broadcast rights having increased by about 9% annually since the turn of the millennium, as its motivation to launch the fund, saying there have been few opportunities for private investors in the sector.
“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.
Martin Wolf, from Sports Advisory International in Munich, which acts as an advisor to the fund, said: “The sports and entertainment sector will further benefit from digitalisation, as media rights, data and eSports are the big growth drivers of the future.”
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