German bank launches sports investment fund

German bank Donner & Reuschel has launched a new sports fund focused on football and commercial rights which it states will open up opportunities previously limited to corporations and private equity funds.

Donner & Reuschel, which is headquartered in Hamburg, said the fund will target broadcasting rights, equity investments in clubs and equipment suppliers, and sports properties such as stadia and training centres.

Donner & Reuschel will assume the role of both custodian and the exclusive sales partner, while asset management company Hansainvest, part of the Signal Iduna Group, will act as the capital management firm.

In the medium term, a fund volume of €200m ($231.7m) is targeted, while the minimum subscription amount is €1m. The target return at the fund level is eight per cent per annum before costs, and the duration of the fund is until the end of 2028.

“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,” Thomas Ronfeld, head of primary markets at Donner & Reuschel, said.

Martin Wolf and Robert Niemann, executives from Munich-based Sports Advisory International, are acting as advisers to the fund. They added: “The sports and entertainment sector will further benefit from digitalisation, as media rights, data and esports are the big growth drivers of the future.”