David Abrams, SportRadar’s Arne Rees Launch Sports activities Fund – Sportico.com

David Abrams and Arne Rees have launched Velocity Capital Administration, an funding fund specializing in the intersection of sports activities, media and leisure.

The fund goals to purchase into growth-stage firms with sturdy enterprise fundamentals and enterprise values as much as $2 billion.

Abrams was most just lately the chief funding officer of Harris Blitzer Sports activities & Leisure, which owns the Philadelphia 76ers and New Jersey Devils, amongst different sports activities properties. Rees has been North America CEO of Sportradar, however is stepping down from the function with at this time’s announcement and strikes to the advisory board of the Swiss sports activities knowledge and analytics firm.

“We consider now we have differentiated expertise, not solely investing throughout a number of asset lessons in several industries throughout many cycles, however really operating, turning round and creating worth in several companies,” stated Abrams in a video name. “We consider now we have an ideal plan to make the most of what our traits are.”

Velocity launches with a minimum of $27 million in property, the quantity reported in a regulatory submitting dated Aug. 31. Along with funds from the co-founders, outdoors traders in Velocity embrace Delaware North, the Jacobs family-owned concession agency and proprietor of the Boston Bruins and Boston’s TD Backyard; Germany-based household workplace Bolt Ventures; Signify Wealth, which is a registered funding advisor serving primarily NFL gamers; sports activities advertising and marketing and expertise company Remington Ellis; Leeds United soccer participant Jack Harrison; and RNW Administration, the household workplace of Apollo International Administration CEO Mark Rowan.

Velocity has already closed on one funding, an fairness stake in Camp NYC Inc., an experiential retailer that sells primarily children merchandise and provides in-store experiences with Disney’s Mickey & Mates and portray and ceramics with Artwork Camp. The fund additionally expects to shut on one other funding quickly, based on Abrams.

The 2 executives see the timing of Velocity as fortuitous, given the market-wide retrenchment of valuations this 12 months. Particularly, Abrams’ background in distressed property—he was co-head of Credit score Suisse’s world misery gross sales and buying and selling group—can be an asset within the present setting, based on the chief.

“What we’re seeing at this time isn’t just disruption within the house but additionally disruption available in the market by way of repricing of valuations,” stated Abrams. “That could be a nice alternative for a fund that has restructuring and working experience, to not simply be a capital supplier but additionally an working companion for enterprise which will should pivot their plan.”

Particularly Abrams pointed to sports activities betting and NFTs as two areas the place values seem to have gotten forward of themselves and can end in companies that might want to rethink their approaches. The pair’s background in lots of elements of the investing and sports activities enterprise will permit them to be lively companions in serving to firms retool, added Rees.

“Having began my profession as an investor, my curiosity has at all times been investing in sport as an asset class,” stated Rees, on a video name. “I used to be very fortunate to take a look at this enterprise from all totally different sides—as a vendor of rights, a purchaser of rights, as an investor and as an operator. I’m fascinated by this complete world as an investable asset class.”

The chance to return to investing appealed to Rees which explains he’s stepping down from Sportradar, the place he has led the North American enterprise since late 2020 after having been concerned as an investor. Rees is probably finest identified for his work at ESPN, the place he held varied senior govt positions, and at UEFA, the place he was head of strategic enterprise improvement. He additionally beforehand was a companion at MSP Sports Capital.

Abrams and Rees acquired to know one another effectively throughout Sportradar’s 2021 acquisition of Synergy Sports activities, a mixed enterprise that embrace Keemotion, an funding of Harris Blitzer’s.

“I’m actually glad to begin this with David,” stated Rees. “I feel there’s a spot for growth-focused fund investor. We now have plenty of confirmed companies which have been enterprise financed and David and I’ve an actual candy spot in serving to them take the following step with our expertise.”

With at this time’s announcement, Velocity additionally detailed members of its administration staff. Funding banking veterans Jessica Li and Sarina Crisci are head of investor partnerships and chief working officer, respectively. The funding staff contains Dylan Zane, who labored on sports activities and leisure transactions at Evolution Media Capital, and Nishant Jain, who had been at funding agency Blue Level Capital. Touré Clairborne, just lately head of consulting and sponsorships at Intersport, is Velocity’s working companion for firmwide initiatives.

The fund will search to make investments of as much as $50 million for management or non-control stakes of companies, with a concentrate on capital preservation and good risk-adjusted returns, based on a press launch.

“The repricing within the public markets is creating a superb alternative because the personal markets recalibrate in response,” stated Abrams on the video name. “Now we really feel we could be a little extra selective. We’re constructing what we expect is a differentiated enterprise.”