London-based hedge fund Fasanara Capital has teamed with an investment bank focused on sports-related investments to create a new product that aims to make a profit from the player transfer market, according to a report by Bloomberg.
London-based hedge fund Fasanara Capital has teamed with an investment bank focused on sports-related investments to create a new product that aims to make a profit from the player transfer market, according to a report by Bloomberg.
Fasanara Capital, which oversees $4 billion of assets, has partnered with Tifosy Capital & Advisory and is targeting a maximum of $500 million for a new fund which will to lend to smaller clubs in Europe’s top five leagues seeking to make transfer deals or spend on infrastructure. Investors will be paid back from future ‘sports receivables’ income streams, including player transfers, ticket sales and broadcasting rights payments.
The deals will be originated by Tifosy, which has built its own model for assessing the value of playing squads, while Fasanara will manage the portfolio of loans.
The new fund will provide financing based on the value of assets on a club’s balance sheet, lending up to a quarter of the squad’s value. The fund has so far struck deals with about 10 clubs and expects to work with up to 30 in total.
