Otro Capital Closes Record-Breaking $1.2 Billion Inaugural Sports Fund

Otro Capital has announced the final close of its first dedicated sports fund, raising $1.2 billion in committed capital. The fund, known as Otro Capital Fund I, represents the largest-ever raise for a first-time dedicated sports buyout fund globally, significantly exceeding its initial target of $500 million. Based in New York and founded in 2023 by former RedBird Capital Partners executives, the firm plans to use the capital to acquire controlling or shared-control stakes in cash-flowing, middle-market sports teams and related intellectual property businesses.

The fund has attracted a diverse group of institutional investors, including the California Public Employees' Retirement System (CalPERS), which committed $50 million. Other backers include leading pension plans, wealth platforms, and family offices. Otro Capital’s investment strategy focuses on assets where it can apply hands-on operational expertise to unlock value through professionalized management and enhanced governance. The firm has indicated a preference for deals involving at least $75 million in equity, targeting approximately ten primary investments over the life of the fund.

While the firm’s co-founders have extensive experience in the NFL and NBA, the fund’s focus on controlling stakes may limit its activity in major North American leagues that currently restrict private equity to passive minority positions. Instead, Otro is looking toward international opportunities and adjacent sports businesses. The firm has already deployed capital into several high-profile assets, including a stake in the Alpine Formula One team and the global sports marketing agency Two Circles. Additionally, Otro recently made headlines as the first external private equity investor in U.S. college sports through a strategic partnership and commercial joint venture with the University of Utah.

Co-founders Alec Scheiner and Brent Stehlik emphasized that the firm’s primary goal is to treat sports properties as sophisticated businesses rather than passive trophy assets. They believe that sports and its surrounding ecosystem will continue to capture a disproportionate share of consumer attention and loyalty, providing a resilient platform for growth. By focusing on enduring intellectual property and new revenue models, Otro Capital aims to differentiate itself in an increasingly crowded sports investment landscape, positioning Fund I as a major player in the institutionalization of the sports industry.