re: The $500M private equity play to boost Texas college football programs

While I’m concerned about PE getting involved, and personally I don’t think it will happen at any public university, this is a nothing burger as they are just provided debt.

quote:

---

One of the needs that we’ve seen that’s gone unfulfilled is the need for project-based or bridge capital that a school might not be able to achieve within the university debt structure or via bonds,” Marks told SBJ. “We’re looking more to provide debt-type capital or credit, [and] that ultimately we can help a school monetize that investment and that return on capital more than anyone else.” To Marks’ point, Elevate’s strategy with the initiative aims to support cash-strapped athletic departments without requiring equity commitments or short-term exit strategies typically deployed by private equity firms. Instead, these disbursements can be long-term deals secured by a percentage of future, incremental revenues.

---

I’m curious how this would go if someone defaulted, would they take over a building on campus? These buildings have been heavily subsidized by donor funding and probably could be finalized through other debt facilities that were university wide, but with donor money going to NIL that is likely drying up as I predicted.

told someone else on the RB that Texas is trying to totally re-establish the market in NIL.. it will become total arms race, that will be far, far too expensive for many college programs