Private equity is officially entering the college sports arena.
Elevate, a leading collegiate sports services provider, is set to unveil the Collegiate Investment Initiative — a $500 million fund backed by Velocity Capital Management and the Texas Permanent School Fund — aimed at providing new funding sources for capital-intensive projects across collegiate athletics, according to a report from Sports Business Journal on Monday.
The initiative marks the first significant private equity-backed vehicle targeting college athletics, with a focus on financing facility upgrades, renovations and other big-ticket projects that often exceed the reach of traditional university funding mechanisms.
Jonathan Marks, Elevate’s Chief Business Officer for College and Global Marketplace, said the platform has already closed funding deals with two Power Four athletic departments. While he declined to disclose specifics, Marks expects to finalize another three to six deals before the start of this year’s college football season.
“One of the needs that we’ve seen that’s gone unfulfilled is the need for project-based or bridge capital that a school might not be able to achieve within the university debt structure or via bonds,” Marks told SBJ. “We’re looking more to provide debt-type capital or credit, [and] that ultimately we can help a school monetize that investment and that return on capital more than anyone else.”
Unlike traditional private equity models that often require equity stakes or short-term exit strategies, Elevate’s approach offers long-term, customizable deals secured by a share of future incremental revenues. Marks noted that while the cost of capital will be higher than a typical bond or credit facility, the expectation is that schools will repay the investment through a portion of new revenue generated by the funded projects.
Elevate Chairman and CEO Al Guido emphasized the company’s unique position, already servicing nearly 70 collegiate clients, to bridge institutional capital with the needs of athletic departments.
“The biggest difference from us to maybe the other private equity partners that have tried to attack the space is we’ve already had these partnerships,” Guido said. “With that knowledge, combined with capital that schools can use, I do think it’s hopefully the winning solve.”
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The fund’s backers include Velocity, a sports-focused private equity firm launched by David Abrams and Arne Rees in 2021, and the Texas Permanent School Fund, which committed $200 million last year and holds an ownership stake in Velocity. These two entities are the sole financiers behind Elevate’s new collegiate investment strategy, with the $500 million representing an initial effort and ambitions to grow the platform into a multi-billion-dollar enterprise.
Marks added that Elevate is also considering conference-level deals, potentially secured by league-controlled assets such as jersey patches, field logos and ticketing revenue. Elevate already maintains relationships with major conferences, including the ACC and Big East.
The timing of the initiative comes as athletic departments face mounting financial pressures. The recent House settlement, approved by Judge Claudia Wilken, will allow schools to pay athletes directly, with top programs expected to approach the $20.5 million cap. As a result, schools are increasingly pursuing new revenue streams through facility enhancements, premium seating and other projects.
While private equity has eyed college sports for years, entry has been complicated. The Big 12 recently paused its exploration of private equity options, while the Big Ten continues to evaluate potential partnerships.
Guido underscored the scale of opportunity: “If you just forecast over the next call it five years … you’re talking at the lowest-end level, conservatively, roughly $10 billion of infrastructure projects that I would consider publicly or at least quietly being talked about on these campuses. I truly think that the winning combination is a service provider that has access to capital where deemed appropriate.”
With the launch of the Collegiate Investment Initiative, Elevate and its partners are betting that private equity can provide the financial muscle needed to reshape the future of college sports.
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