Key Takeaways
- St. Cloud Capital invested out of its fourth fund, which holds $236 million in committed capital, to help finance Brand Velocity Group’s acquisition of RCX Sports.
- RCX manages the official youth licenses for five major leagues, including NFL Flag, MLS GO, Jr. NBA and Jr. WNBA, MLB Pitch, Hit & Run, and NHL Street.
- The deal is backed by Hamilton Lane’s Impact platform, St. Cloud Capital, Darco Capital, and Three Ocean Partners, alongside athlete partners.
- RCX anchors BVG Sports, the firm’s dedicated sports vertical, and was named to Fast Company’s 2026 Most Innovative Companies list.
- Founder and CEO Izell Reese and the current management team remain in place under the new ownership.
A Lower Middle Market Firm Enters Youth Sports
St. Cloud Capital, a Los Angeles private investment firm founded in 2001, has joined the investor group financing Brand Velocity Group’s acquisition of RCX Sports. The firm announced its participation on June 23, building on the original deal Brand Velocity Group disclosed on June 4.
St. Cloud has managed more than $700 million and invested in over 80 portfolio companies since inception. It typically targets the lower middle market, companies with annual revenues between $10 million and $150 million. The RCX investment comes out of St. Cloud’s fourth fund, which carries $236 million in committed capital. Global law firm K&L Gates LLP served as counsel to St. Cloud.
What RCX Brings to the Table
RCX Sports operates as the only multi-sport organization running league-backed youth programs across the NFL, NBA, WNBA, NHL, MLS, and MLB. Its license portfolio includes NFL Flag, MLS GO, Jr. NBA and Jr. WNBA Leagues, MLB Pitch, Hit & Run, and NHL Street.
The platform sits at the base of the youth sports pyramid, where participation is recurring and fees renew each season. RCX provides licensed uniforms, equipment, and operational support to local league operators. Brand Velocity Group acquired the company from Raine Partners, and RCX serves as the cornerstone investment for BVG Sports, the firm’s specialty sports platform.
The Capital Structure Behind the Deal
The transaction relies heavily on impact-aligned capital. Hamilton Lane, which manages and supervises roughly $1 trillion in assets, participated through its Impact platform. St. Cloud Capital, Darco Capital, and Three Ocean Partners round out the institutional group. Athlete partners Eli Manning, Emmitt Smith, Larry Fitzgerald, and Jameis Winston also committed capital.
Kacy Rozelle, Managing Partner at St. Cloud Capital, framed the firm’s interest around access. “The Company’s commitment to providing mission-critical services and resources that create opportunities in local communities for more young athletes to participate is consistent with St. Cloud’s impact-driven investment philosophy,” he said.
Izell Reese, Founder and CEO of RCX, pointed to the operator relationship. He said the capital lets RCX deliver licensed uniforms, equipment, and dedicated support to league operators while keeping participation affordable for families.
Affordability as the Stated Thesis
The investors have positioned affordability as the central rationale. In a CNBC interview, Eli Manning, a Partner at BVG and Super Bowl champion, said the professional leagues want lower costs for families and more children playing. He described the goal as bringing in capital so RCX can scale that model.
That framing matters given the political backdrop. According to CNBC, a group of congressional Democrats recently introduced a bill that would bar some private equity firms from investing in youth sports, citing concerns about rising costs and commercialization. The RCX group has consistently described its approach as broad-based participation rather than premium pricing.
Where This Fits in the Youth Sports Capital Cycle
St. Cloud’s entry shows how the investor base in youth sports is widening beyond sports-specialist funds. A generalist lower middle market firm and a $1 trillion impact platform are now writing checks into the same grassroots platform, drawn by recurring season-based revenue and league licensing relationships. For RCX, the diversified group supplies both growth capital and the operational reach to expand its league-backed programs nationally while management stays intact.
Source: St. Cloud Capital, June 23, 2026, https://www.prnewswire.com/news/st.-cloud-capital/
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