Champion Fund, a new private equity-like investment vehicle, has launched to provide unaccredited retail investors with access to private sports assets. Co-founded by New Orleans Saints alum Marques Colston and former MMA fighter Nick Edwards, the fund allows individuals to invest for as little as $500, or $5,000 via a retirement account. This initiative is unique as it's the first to offer diversified private market access in the sports industry to "mom-and-pop" investors, contrasting with previous access limited to the super-rich, institutional investors, or accredited investors.
The fund's portfolio includes ownership stakes in prominent entities like Ipswich Town FC, Fathead, and Emerging Fund, which itself holds stakes in companies such as F1 Arcade, BatBox, and Pool House. Colston emphasizes that this venture aims to convert fandom into ownership, opening up a new investor base for the still nascent sports asset class. The fund is currently evaluating approximately $750 million worth of deals and aims for significant growth, with Edwards envisioning it reaching $1 billion to $5 billion in assets.
Champion Fund is structured as an interval fund, an SEC-regulated vehicle designed to hold illiquid assets. While offering periodic liquidity windows, investors can only sell shares twice a year, with an aggregate limit of 5% of outstanding shares during each period. The first redemption window for investors won't open until August 2027. The fund has an annual expense ratio of 5.75%, which is notably higher than typical index funds, and includes a 2.9% management fee. Initially available through its website, the fund anticipates wider availability through major retail brokers like Charles Schwab and Fidelity Investments as its assets under management grow, with a target of $100 million to $150 million to reach critical mass.
