Otro Capital Becomes First PE Firm to Win College Sports Deal

A 2-year-old private equity firm founded by former employees of RedBird Capital Partners beat larger rivals to strike the industry’s first deal with a college sports program.

Otro Capital will take an equity stake in Utah Brands & Entertainment, a new for-profit vehicle that aims to boost revenue for the University of Utah and its athletics program, according to a statement Tuesday.

The agreement is a major win for Otro, as private equity firms have long failed to reach deals with universities and conferences. The amount of the investment and valuation have yet to be determined. The firm spoke ...