Key Takeaways
- Otro Capital closed its inaugural fund at $1.2B, more than double its original $500M target, marking the largest first-time dedicated sports buyout fund ever raised globally
- The firm has deployed roughly one-third of its capital across three investments, including a control position in youth sports events company FlexWork Sports acquired in August 2025
- Otro is targeting approximately 10 new investments with a minimum of $75M per deal, focusing on controlling stakes rather than passive positions, according to Sportico
- Co-founder Alec Scheiner specifically named youth sports, college athletics, and ancillary businesses as areas of interest
- CalPERS, the California public employees’ retirement system, committed at least $50M to the fund
Fund Exceeds Target by $700M
Otro Capital, a New York-based private equity firm founded in 2023, closed its first fund late last week with $1.2B in committed capital. The firm had originally targeted $500M.
The firm describes the raise as the largest first-time dedicated sports buyout fund ever raised globally. As of December 2025, Otro managed $1.3B in assets.
Investors in the fund include pension plans, retirement systems, wealth platforms, endowments, foundations, family offices, and strategic investors. CalPERS has confirmed a commitment of at least $50M, though the full extent of its investment has not been disclosed.
“Our investors backed us because they believe we are differentiated in the sports ecosystem,” co-founders Alec Scheiner and Brent Stehlik said in a joint statement. “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.”
Youth Sports Named Among Target Sectors
Otro’s investment strategy explicitly includes youth sports. In an interview with Sports Business Journal, co-founder Alec Scheiner identified youth sports, college athletics, niche sports, and ancillary businesses as areas the firm finds compelling.
“Since we will avoid minority stakes in the four major leagues in the U.S., what gets us excited is those small- to medium-sized businesses that have carved out a really unique niche for themselves,” Scheiner told SBJ. “You can see that in youth sports, you can see that in college athletics, you can see it in niche sports, you can see it in spinoffs from pro sports. And you can see it in ancillary businesses that support all of those sports.”
The firm acquired a control position in FlexWork Sports, a youth sports events and marketing business, in August 2025.
Control Stakes and Intellectual Property Drive Strategy
Otro targets controlling stakes or shared control with governance and exit rights, rather than passive minority positions. According to Sportico, the firm typically invests at least $75M per deal and is targeting approximately 10 new investments from the fund.
This approach rules out investments in NFL, NBA, MLB, and NHL teams, which require investors to remain passive. Instead, Otro focuses on what it describes as cash-flowing, middle-market businesses with “enduring intellectual property.”
The firm has deployed roughly one-third of its capital across three investments. In 2023, Otro led the acquisition of a 24% stake in Formula 1 team Alpine Racing at a roughly $900M valuation, alongside RedBird Capital Partners, Ryan Reynolds’ Maximum Effort Investments, and athlete investors including Patrick Mahomes and Rory McIlroy. In July 2024, Otro acquired a minority stake in sports marketing agency Two Circles.
“Our primary goal is to treat sports properties like real businesses,” Scheiner and Stehlik said. “We are confident that sports assets and adjacent businesses, around the world, will continue to disproportionately capture peoples’ attention and loyalty.”
College Athletics Investment on the Horizon
Otro has agreed to invest in Utah Brands & Entertainment, a newly created entity that will oversee the University of Utah’s sports sponsorships, ticketing, and other commercial revenue streams. The business is expected to generate at least $500M. Scheiner declined to comment on the deal’s specifics.
Scheiner pointed to the firm’s operational background as relevant to navigating college athletics.
“It’s obvious that collegiate sports is going through a transformation, and we believe that groups that have operational experience and backgrounds could be able to help universities and colleges navigate this new terrain,” Scheiner said.
Founding Team Combines Investment and Operating Experience
Otro’s four founding partners, Alec Scheiner, Brent Stehlik, Niraj Shah, and Isaac Halyard, previously worked together at RedBird Capital Partners. RedBird Capital is not an investor in Otro’s fund.
Scheiner previously served as president of the Cleveland Browns and general counsel for the Dallas Cowboys. Stehlik served as EVP and CRO of the Browns and was the founding president of OneTeam Partners. He previously held roles with the Padres, Cowboys, and Diamondbacks.
According to the firm, the team’s collective experience spans the NFL, NBA, MLB, NHL, Formula 1, English Premier League, and Indian Premier League, as well as player associations, analytics, licensing, youth sports, media, ticketing, and stadium infrastructure.
PJT Park Hill and August Advisors served as placement agents for the fundraise. Gibson, Dunn & Crutcher provided legal advisory services.
Remaining Capital and Future Investments
With roughly two-thirds of the fund’s capital yet to be deployed and youth sports explicitly named as a target sector, Otro has indicated it will seek additional investments in middle-market sports businesses. The firm has stated it looks for companies with differentiated market positions, cash flow, and intellectual property.
Scheiner highlighted the importance of unique intellectual property in evaluating opportunities across the sports ecosystem.
via: SBJ | Sports Pro | Otro Capital
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