What Is NAV-Based Investing—and Why It Matters in Sports
The information herein is not complete and is subject to change. We may not sell securities of the Champion Fund until the Fund's registration statement filed with the Securities and Exchange Commission is effective. This website is not an offer to sell these securities and is not soliciting an offer to buy these securities in any state where the offer or sale is not permitted.
When investors think about private markets, they often expect complexity: long lockups, opaque valuations, delayed reporting, and uncertain liquidity. Historically, those assumptions have been true.
But NAV-based investing is rewriting that playbook—especially in emerging asset classes like sports.
For investors looking to align long-term growth potential with transparency and flexibility, understanding how NAV-based fund structures work is essential. In the case of Champion Fund, it’s one of the reasons we plan to deliver structured access to a fragmented, fast-moving industry without sacrificing clarity.
First, What Is NAV?
NAV stands for Net Asset Value. It’s a measurement of the value of a fund’s assets minus its liabilities, calculated on a regular basis—typically monthly or quarterly.
In a NAV-based structure, the fund’s value per share (or unit) is updated to reflect the current fair market value of its holdings. That means investors can see the actual performance of the portfolio in a timely and transparent way—rather than waiting years for distributions, markups, or exits.
NAV-based investing is common in mutual funds and REITs—but less so in traditional private equity or venture capital, where mark-to-market discipline is infrequent and investor reporting varies widely.
Champion Fund brings this clarity to the private sports economy.
NAV vs. IRR: Why the Structure Matters
Most private funds emphasize IRR (internal rate of return)—a measure that can be skewed by early exits or inflated projections. While IRR has its place, it doesn’t always reflect the real economic exposure investors hold over time.
NAV-based investing offers a more consistent lens:
It reflects the fund’s current fair market value, not just realized exits.
It aligns with evergreen structures, allowing for rolling investor entry and exit based on transparent pricing.
It supports liquidity, especially in interval fund models where redemptions are offered at NAV on a periodic basis.
In other words, NAV provides visibility into how your capital is actually performing—without needing to wait seven to ten years for answers.
How NAV Works in an Interval Fund
Champion Fund operates as a 40 Act interval fund. Here’s how NAV works in practice:
Daily Valuation: The fund’s NAV is calculated each business day based on third-party valuations and internal fair market estimates across portfolio holdings.
Semi-Annual Liquidity: Investors are offered redemption opportunities twice per year, at a price based on the most recent NAV—subject to fund-level limits.
No Carried Interest: Unlike traditional PE or VC funds, NAV growth directly benefits shareholders. There’s no performance fee for fund managers—just aligned, fee-based management.
This structure ensures that all investors are on equal footing—and that the price they pay or receive reflects the true performance of the portfolio.
Why This Matters in Sports
The sports economy is dynamic. Valuations are rising, capital is flowing in from new sources, and the asset class is evolving fast. That pace requires a structure that can respond in real time—not one frozen in a 10-year drawdown model.
With NAV-based investing, sports investors get:
Clear insight into value creation across team ownership, media, infrastructure, and technology.
The ability to evaluate fund health and performance on a recurring basis—not just when there’s a high-profile exit.
Confidence that their capital is aligned with underlying portfolio growth—not dependent on timing, GP markups, or waterfall distributions.
For an asset class moving from speculation to institutional credibility, NAV-based investing is a foundational upgrade.
Champion Fund’s NAV Model
Champion Fund’s NAV reporting is built around transparency, repeatability, and institutional rigor. Our valuation process includes:
Third-party valuation providers to assist in valuing major holdings
Quarterly fund updates and sector-level commentary
NAV-based pricing for all inflows and redemptions
No side letters, special tranches, or preferential pricing
This ensures every investor—whether accredited, non-accredited, high-net-worth, or retail—has access to the same structure, the same terms, and the same information.
The Bigger Picture: Transparency as Strategy
NAV-based investing isn’t just a structural improvement—it’s a strategic one.
It allows investors to make informed decisions. It supports a new level of financial literacy and engagement. And it reinforces the credibility of the asset class itself.
Especially in sports—where cultural relevance can sometimes cloud investment fundamentals—NAV introduces financial discipline. It transforms emotional interest into measurable exposure. And it brings private markets closer to the standard of institutional-grade investing.
Closing Thought
NAV-based investing represents a shift away from opaque dealmaking and into the future of transparent, investor-aligned capital. For sports investors, it’s not just about access—it’s about structure that works.
And in this asset class, structure is strategy.
