New York-based Otro Capital has closed its first fund with $1.2 billion, positioning itself as a broader sports investor beyond traditional team ownership. The firm, founded in 2023 by former RedBird Capital executives, is targeting the wider sports ecosystem including technology, consumer experiences, and data analytics.

Unlike many private equity firms focused solely on professional sports teams, Otro is pursuing diverse opportunities across the sports landscape. The firm has already made three investments: a control stake in youth sports event company FlexWork Sports, a minority position in Two Circles, a London-based sports marketing agency, and a $218 million investment in Formula 1 team Alpine Racing alongside RedBird and Maximum Effort Investments.

Otro plans to make seven to nine deals from its fund, splitting investments equally between control and minority positions while seeking governance rights on all deals. The firm typically targets four to seven-year holds with a focus on profitable businesses touching the broader sports ecosystem. With private equity interest in sports surging—evidenced by KKR's $1.4 billion acquisition of Arctos Partners and Apollo's new sports capital business—Otro's founders see the U.S. sports market as a $1 trillion opportunity driven by consumer spending and scarcity value in major leagues.