German football investor appoints Luxembourg providers

Quattrex Sports, an alternative investment firm that invests in German football clubs, has appointed a range of Luxembourg service providers including European Fund Administration (EFA). The Quattrex SCA fund, which is domiciled in Luxembourg and structured as a Sicav-Fis, is the first of a series of sub-funds from the Stuttgart-based firm that will invest in professional German and other European football clubs. EFA provides administration and transfer agency to the fund, EY Luxembourg has been appointed as independent auditor, Fuchs Asset Management is the third-party fund management company, and Sedlo Law Firm Luxembourg provides legal services. The fund is the first of a series of sub-funds and provides mezzanine financing to professional football clubs primarily within the first three levels of the ‘Bundesliga’. The aim is to increase the clubs’ financial capabilities and competitiveness, which in turn should lead to higher revenues from media agreements, sponsoring and merchandising. Quattrex aims to deliver two types of returns for investors: a fixed return of 6% to 7%; and a variable return linked with club performance and media revenues. Using this business model, Quattrex has achieved a two-digit interest payment per annum since 2005, according to EFA. Tobias Schlauch, managing director and co-founder of Quattrex-Sports AG, said: “This sophisticated structure, in combination with a dynamic growing soccer market enables investors high security standards and sustainable return on investment.” Thomas Seale, chief executive of EFA, said the mandate win showed EFA’s strong positioning as an independent third-party administrator and that it could help fund firms bring innovative products to market. EFA has €119 billion of assets under administration. ©2016 funds europe

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