Velocity Capital and Texas Permanent School Fund also back fund

Colleges in search of revenue after athletes pay model confirmed

Sports and marketing agency Elevate has launched a US$500 million college sports fund, with Penn State and UCLA denying their involvement with the initiative.

The ‘Collegiate Investment Initiative’ has been launched alongside private equity firm Velocity Capital Management and the Texas Permanent School Fund Corporation. It aims to provide colleges and universities with capital and strategic resources for revenue-generating projects to deliver long-term growth.

Elevate currently works with universities and college sports conferences in areas such as ticketing, hospitality, sponsorship sales and on stadium designs. Schools which align with the new initiative will be able to prioritise infrastructure and commercial projects, including the modernisation of their venues, premium seating expansion, bolstering their multimedia rights and investing in name, image and likeness (NIL) platforms.

“College athletics are at a critical inflection point, and institutions need partners who can bring both capital and strategic expertise to the table,” said Al Guido, chairman and chief executive of Elevate. “With the Collegiate Investment Initiative, we’re doubling down on our commitment to helping schools thrive not just today, but for decades to come.”

The announcement of the fund comes days after a federal judge approved a US$2.8 billion settlement that will allow colleges to pay up to US$20.5 million annually to student-athletes. With the cap set to increase each year, schools will need to come up with new methods to generate revenue.

“Universities are facing unprecedented challenges and opportunities in the new collegiate landscape,” added Jonathan Marks, chief business officer, college at Elevate. “Our investment is more than capital, it’s about empowering institutions to think bigger, move faster, and build lasting infrastructure that fuels growth for generations of student-athletes, fans, and communities.”

Elevate said that two transactions had already been agreed upon, but did not disclose which colleges were involved. Sportico initially reported that Penn State and UCLA were the pair that had partnered with the agency.

However, both universities have denied they are involved with the fund. Penn State’s athletic director Pat Kraft released a statement, which read: ‘Elevate serves as our partner in ticketing strategy and operations. To clarify, our relationship is strictly limited to these services, and we have no affiliation or involvement with any private equity firm or fund.’

Meanwhile, UCLA’s athletic director Martin Jarnold told Yahoo Sports that Elevate works with the college on ticketing and that “we are exploring the opportunity to expand the partnership, but private equity funding is not involved.”