The British Esports Association has today agreed to participate in a new innovative global investment fund aimed at esports, new media and the wider games industry.
Launching July 1st 2019, the Esports Global Fund (EGF) has secured institutional investment of €30m with a further €50m under discussion. It aims to have more than €100m of assets under management within three years.
In stark contrast to similar funds in the industry, EGF will be EU located, registered with a financial services regulator and listed on the funds section of the Nasdaq First North Market. Whilst the fund is EU located, there will be investments made in the UK scene along with the rest of the world.
Investors will benefit from advantages including monthly fund pricing, the prospect of dividends alongside capital growth, partial liquidity and access to some of the most exciting entrepreneurs in the sector. The intention is to develop a best-in-class fund model for the sector.
The fund will be operated by an investment team with over 25 years experience in areas such as edtech, fintech, finance, sports and esports.
David Martin, Investment Director at EGF, said: “The aim is to create a fund not yet seen in the esports fund arena, for us that means using an EU country as the home location, publicly listing the fund on Nasdaq and placing ourselves in view of regulators, all whilst creating an open ended, evergreen, partially liquid fund targeting long term capital appreciation.”
The EGF will invest in both stock exchange listed esports sector companies and early stage private high growth opportunities.
Chester King, CEO of the British Esports Association, has agreed to become the fund’s ‘Entrepreneur in Residence’. He will advise the fund’s investment committee on the prevailing trends in the sector and connect organisations seeking investment to the fund. EGF will be making a donation to British Esports for his support.
The fund launch has already gained significant support from the sector and the UK government.
“The creative and digital sector recognises esports as one of the most exciting activities to have emerged in recent years. With greater government support, more esports activities in the UK and with new funds like this, we can take esports to the next level in this country. I wish the businesses that gain investment every success,” said Rt. Hon Ed Vaizey MP.
Mark “Garvey” Candella, Director of Strategic Partnerships at Twitch, added: “There are many start-ups, fledgling esports and new media businesses out there with great potential but lacking the investment to get off the ground.
“This market is crying out for a dedicated, reliable fund and EGF together with Chester King are the team to make this happen.”