Wednesday, 22 November 2017

Donner & Reuschel - ?!

Er, I think it's one of those dodgy European duos. 'What do you mean, boss?' You know, Voice, one of those musical acts they have on the Eurovision Song Contest. 'Really?' Ha! No. It's a German bank. 'Oh. That's boring.' Yeah, never mind. / Anyway, they reckon you can invest in professional sports now ...

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.

What innovative fund?! 'Their innovative fund, I suppose.' Yes, I suppose. Let them explain!

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.

That's nice.

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 digitalization, 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.

And, uh ... just out of interest, like ... does this fund actually have a name? I mean, it's not rude to ask, is it?

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.

Well, no. They're just calling it ... Innovative Fund, then. Maybe. I don't know. 'Or Sports Fund, boss. Maybe they're calling it Sports Fund.' Yeah, that would be a good name for it, Voice. I hope they are calling it that.

Anyway, I, uh ... also hope that they make a great success out of it. This isn't an endorsement, you understand, dear reader(s), but - 'It would be churlish not to wish them the best.' Exactly! Exactly! That's exactly how I feel about it.


Anything else? Oh, I see, reader(s) ... you want more? I've told you about the new fund, and you want more. 'They're insatiable! You know that, boss.' Yes, yes, I do.