Global investment management company Artist Capital Management has raised $100 million for an esports fund. The Artist Esports Edge Fund seeks to provide institutional investors with exposure to companies in the esports space. It will take “concentrated positions” in private companies that are well positioned to benefit from industry tailwinds.
Artist Capital Management’s Edge Fund
“Similar to the evolution of other internet verticals, we expect that a small number of esports companies will eventually win the lion’s share of industry revenue and market capitalization,” said Josh Dienstag, Chief Investment Officer at Artist Capital Management, in a statement. “We hope to partner with the entrepreneurs who are building those winning platforms.”
The Artist Esports Edge Fund’s current investments include Washington Esports Ventures, the owner of Overwatch League franchise Washington Justice; along with other undisclosed chatting and viewing apps in the ecosystem.
“Our investors continue to prioritize access to innovative products that provide thoughtful exposure to burgeoning investment themes,” said Matthew Lindholm, Managing Director at Houston-based CAZ Investments, a principal supporter of the Edge Fund. “Artist Capital Management was an early mover in esports, and the Edge Fund provided an institutional solution for esports investing.”
The Edge Fund will partner with esports companies for the long term, with a ten-year duration of capital. The fund is flexible and can invest across stages, along with both primary and secondary securities.
Previous investment in 100 Thieves
“Artist Capital Management has been an excellent partner: they understand our industry, appreciate our differentiation and support our vision,” said John Robinson, President & COO of 100 Thieves. The esports industry is fundamentally changing entertainment and brand affinity and we’re really happy to be working with a firm that recognizes these trends.”
Artist Capital Management’s Edge Fund led 100 Thieves’ Series B funding round in July of 2019. The Los Angeles-based organization raised $35 million to develop a 15,000 square foot facility and headquarters. It also planned to use the funding toward supporting new esports business ventures and the expansion of its existing apparel brand. With this investment, Josh Dienstag joined the organization’s board of directors.
In addition, Artist Capital Management has raised $35 million in incremental capital from undisclosed limited partners in separate co-investment vehicles. This funding has already been deployed in 2019 to further support Edge Fund’s portfolio esports companies.