Quattrex Sports AG as initiator has recently chosen European Fund Administration (EFA) for the administration and transfer agency of their alternative investment product Quattrex SCA, SICAV-FIS. The partnership aims to offer investors a choice of sub-funds investing in professional German and more generally European football clubs featuring a diverse array of investment objectives in connection therewith.
This first-of-a-series sub-fund provides mezzanine financing to professional football clubs primarily within the first three levels of the Bundesliga to increase their financial capabilities as well as to strengthen their sportive competitiveness (especially promotion or qualification for international competition). In football, sportive success correlates heavily with all substantial revenue streams (media revenues, ticketing, sponsoring, merchandising…).
The invested clubs are affiliated with the German Football Association and are subject to supervision of Deutsche Fußball Liga (the DFL), the organiser of professional German football. The main function of the DFL is to enable a clean and fair competition. Therefore, every licenced club has to pass a strict and elaborate examination process, the so-called “Lizenzierungsverfahren”. In this regard, financial and infrastructural conditions, among others, are reviewed.
For the investors of the funds, the return on investment consists of two components:
· Fixed return (6 to 7%);
· Variable return/upside (linked with the sportive performance of the club and therefore the respective increase of media revenue) .
With this established business model, the investment adviser has achieved a two-digit interest payment per annum since 2005. Tobias Schlauch, managing director and co-founder of Quattrex Sports AG, responsible for managing and monitoring the contracts entered into by Quattrex Sports AG with football clubs and generally responsible at Quattrex Sports AG for the management of the investment process comments: “Quattrex – as initiator and investment adviser of the fund – is proud to present a proven and successful business model which is embedded in a regulated Luxembourg fund structure (AIFM regulated), supported by professional partners and 3rd party service providers. This sophisticated structure, in combination with a dynamic growing soccer market enables investors high security standards and sustainable return on invest.”
Thomas Seale, CEO of EFA adds: “EFA is pleased to welcome Quattrex Sports AG as a client. This delegation confirms our strong positioning as an independent player and partner to bring innovative products to the market. Our constant interaction with our client base has helped us to understand market needs and develop tailor-made solutions.”
As part of this project, Quattrex Sports AG has also nominated:
· EY Luxembourg as independent auditor of the fund;
· Fuchs Asset Management SA, as independent third party fund management company to ensure oversight and monitoring of fund’s activity as well as providing substance and support with the investment process;
· Sedlo Law Firm Luxembourg (Adrian Sedlo and Yevgeniy Sadov), for structuring and designing the product from a legal, financial and operational prospective.