The University of Utah is closing in on a first-of-its-kind private equity deal with Otro Capital.

The deal, which could change the landscape of college athletics, is expected to bring in up to $500 million, according to a report from Yahoo Sports.

Once everything is finalized, the New York-based private equity firm will hold a minority stake in Utah Brands & Entertainment LLC. This company will oversee major revenue streams for Utah athletics.

Here are five things to know about Otro Capital.

Co-founder was the former president of an NFL team

Otro Capital co-founder and partner Alec Scheiner was the president of the NFL’s Cleveland Browns from 2013-16.

With the Browns, Scheiner helped oversee major renovations to Cleveland’s FirstEnergy Field — now known as Huntington Bank Field — during his tenure and the renovation of the Browns’ training facility, according to ESPN.

He resigned from the franchise in March of 2016. Scheiner also worked a previous stint with the Dallas Cowboys in their front office.

There, he was senior vice president and general counsel for the Dallas Cowboys Football Club and its affiliated entities.

California pensions are a significant investor

California Public Employees’ Retirement System, better known as CalPERS, has become a key investor in Otro Capital and its related funds. The agency in California’s executive branch manages the benefits, including health and retirement funds, for over 1.5 million public employees, former employees, and family in the state. It is the largest public pension fund in the U.S.

CalPERS documents show the program has committed to $250 million for Otro Capital and related funds. $50 million of that commitment came in 2025 to Otro’s Capital Fund 1-A, with CalPERS reporting that it has contributed approximately $17 million through June 30 of this year.

Another $200 million is committed to “Cowtown LP,” a fund with four officers. Those officers are the same four founders as Otro Capital: Alec Scheiner, Brent Stehlik, Niraj Shah, and Isaac Halyard. Otro Capital’s SEC Form ADV also lists “Cowtown GP, LP” as a company with common control as Otro.

It’s not known if California’s $250 million investment is going directly to Otro’s investment in the University of Utah’s athletic program, or if it is instead earmarked for other Otro investments. It’s also not clear where Otro’s other capital comes from, as generally, private investors are subject to limited public disclosure rules when investing in private equity funds. CalPERS’ investment was revealed only because it is a public institution.

Otro’s most recent disclosures reported the company had a total of $839 million in assets under management, including $287 million attributed to non-U.S. assets.

The state of California runs two major university programs in the state: University of California schools (including UCLA and Cal) and California State universities (including Fresno State and San Diego State). None of those schools compete in the Big 12 conference as the University of Utah does, but there are frequent matchups between Utah and the California schools.

CalPERS currently invests in over 400 private equity funds with a wide variety of financial interests.

Invested in Formula One racing

Before showing interest in collegiate athletics, the New York-based capital firm invested in BWT Alpine Racing, one of the 11 racing teams in Formula One.

Otro Capital has held a 24% stake with Alpine since June 2023, when it valued the team at around $900 million. According to the Sports Business Journal, Otro recently held “exploratory talks” to potentially sell its stake in the racing team.

NFL stars, actors have Otro ties

Patrick Mahomes and Travis Kelce are known for their success with the Kansas City Chiefs.

The pair of NFL teammates have won three Super Bowls together and have appeared in five all-time. Mahomes has established himself as, arguably, one of the best quarterbacks in the NFL.

But what some people don’t know is that both Kelce and Mahomes invested in Alpine Racing through Otro Capital, according to an ESPN report in 2023.

Hollywood actors Ryan Reynolds and Rob McElhenney also joined Otro Capital and RedBird Capital Partners when investing in the Formula One Team in 2023.

Other investments

Outside of Otro Capital’s investment in Formula One racing, it also holds private capital stakes in FlexWork Sports, a sports event and marketing agency, and Two Circles, a fan and data analytics platform, according to its website.

FlexWork Sports is known for fostering athlete-led youth camps — most notably for basketball and football — for skill development.

Two Circles was established in 2011 and leverages data to help organizations grow revenue and sports audiences. According to its website, Two Circles has 13 international offices and has worked with top sports leagues like the NFL, Premier League and UEFA Champions League.