Otro Capital, the sports-based private equity firm, has announced that a record $1.2 billion in capital has been committed to its inaugural sports fund and affiliated investment vehicles.
The New York-based company said the fundraising substantially exceeded its initial target and claims it is the largest first-time, dedicated sports buyout fund ever raised globally.
Investors in the fund include a global group of pension plans, retirement systems, wealth platforms, endowments, foundations, family offices, and strategic investors.
Alec Scheiner and Brent Stehlik, co-founders and partners at Otro, said: “Our primary goal is to treat sports properties like real businesses. We are confident that sports assets and adjacent businesses, around the world, will continue to disproportionately capture people’s attention and loyalty.
“We believe we can increase existing revenue streams, tap into new ones, and even create wholly new business models. Our investors backed us because they believe we are differentiated in the sports ecosystem.
“And, we have been able to consistently partner with premium rights holders and world-class founders in the industry because we speak their language and have lived their operational challenges.”
Since launching its fund, Otro has deployed capital across multiple investments, including Formula 1 motor racing team Alpine Racing, international sports agency Two Circles, and youth sports event and marketing business FlexWork Sports.
Most recently, Otro agreed a landmark investment deal with the University of Utah.
The agreement is expected to be finalized in early 2026 and will be the first of its kind in college athletics.
The private equity partnership is expected to help the university generate an estimated $500 million.
The school will be the majority owner and possess decision-making authority while Otro earns a percentage of the company's annual revenue.
As well as Scheiner and Stehlik, Otro Capital was co-founded by Niraj Shah and Isaac Halyard in 2023.
Collectively, the quartet has experience across major global professional sports leagues (NFL, NBA, MLB, NHL, Formula 1, English Premier League, Indian Premier League), as well as businesses supporting the broader sports ecosystem (US Players Associations, sports analytics, marketing, licensing, youth sports, media, ticketing, entertainment, and stadium infrastructure).
