NEW YORK--(BUSINESS WIRE)--Velocity Capital Management (“Velocity”), a private equity firm with deep operating expertise and investment experience across the sports, media and entertainment ecosystem, today announced that it has forged a transformative strategic partnership with the Texas Permanent School Fund Corporation (“Texas PSF”).
Texas PSF has made an anchor investment of $200 million into Velocity’s flagship Opportunity Fund, and has an agreement to negotiate acquiring a minority interest in the firm targeted to close in the fourth quarter. As part of this agreement, Texas PSF is allocating additional capital for co-investment, credit and real estate opportunities within Velocity’s areas of investment and operational experience.
“We believe there will be continued disruption and innovation of intellectual property within the sports, media and entertainment industries,” said Robert L. Borden, Chief Executive Officer and Chief Investment Officer, Texas Permanent School Fund Corporation. “Velocity Capital Management is strongly positioned to capitalize on this investment theme and possesses a proven track-record of being an operationally focused value-add investment partner with capabilities that go well beyond taking passive minority stakes in sports franchises. We are excited to partner with David Abrams, Arne Rees and the entire Velocity team, and we are confident that our large and long-duration capital base will enable them to generate attractive risk adjusted returns for our beneficiaries. We intend to build upon the differentiated platform that Velocity has already created and are excited to get started.”
David Abrams, Co-Founder and Managing Partner of Velocity, said, “We are thrilled to welcome Bob and Texas PSF to the Velocity family. This is a significant and transformational partnership for our firm that will enable us to accelerate our growth and pursue a variety of strategic investments with the aim of delivering long-term value creation on behalf of our existing investors and Texas PSF. We are humbled by the support, confidence and trust that Texas PSF is placing in us.”
Arne Rees, Co-Founder and Partner of Velocity, added, “Texas PSF is the ideal strategic partner for our firm as we embark on this next chapter of our growth. Their team positions us to not only identify new and unique investment opportunities, but to leverage our existing portfolio companies to help support youth, underserved communities and local economies throughout Texas. Overall, it’s a win-win partnership that we collectively believe will have a significant impact for all involved.”
The Texas Permanent School Fund Corporation was created by Texas’ first Constitution in 1845 as a perpetual fund to invest for the benefit of the state’s public schools. Since that time, the Texas PSF has grown to comprise over $56 billion in assets and distributes nearly $2.2 billion annually to Texas K-12 schools. In 2021 the 87th Texas Legislature established the Texas Permanent School Fund Corporation as a stand-alone special-purpose governmental corporation.
About Velocity Capital Management
Founded in 2021, Velocity Capital Management is a private equity firm leveraging its influential capital and domain operating expertise to grow best-in-class businesses in the sports, media, and entertainment ecosystem. Velocity’s leadership has more than 60 years of institutional investment and C-suite and ownership experience throughout the firm’s core investment verticals. Velocity currently has investments in Parella Motorsports, Elevate Sports Ventures, Videocites, X Games and Camp. For more information, please visit www.velocitycm.com.
