Kyle Fox, a leading-edge investor in sports, clean energy, and real estate, launched her KRF Capital alternative asset platform to provide family offices and institutional investors access to deal flow across a number of high delta sectors.
Ms. Fox draws on her experience in the institutional financial services ecosystem driving revenue at investment banks and institutional investment firms across the globe. She thinks outside of the box and across asset classes and geographies when sourcing, developing, and executing new deal opportunities and advising clients on strategies to create profitability and sustainability.
The strategic and regional focus of KRF Capital is investing in small to middle-market companies in the U.S., Europe, and Latin America. This has afforded it a diverse range of deal flow that has led to over 300 deals and more than $30 billion in capital invested over the last two decades. Ms. Fox’s global perspective is rooted in the financial centers of the US and Europe. She holds both UK and US citizenship and boasts over 14 years of experience building deals and facilitating financial transactions in the EU.
The exciting world of professional sports is the focus of K Sports Capital (KSC). It is built to invest in both majority and minority stakes in sports teams and to provide customized liquidity and passive growth capital solutions to sports franchise owners and governors.
KSC’s approach is to enhance content delivery to fans while layering in B2B revenue opportunities, data, and performance analytics with the use of sports technology.
Grit Daily: Please tell us about your finance background.
Kyle Fox: My broad-based background in business and finance provides me with the skills and knowledge needed to help our clients make informed decisions and maximize the value of their investments. My career began in Ho Chi Minh City, where I founded a company focused on the design and manufacturing of hard and soft goods. This experience gave me a deep understanding of the global ecosystem required to get a product created and onto the shelves of stores. I furthered my knowledge of business and finance by attending business school at night and working as an equity analyst for a long-short hedge fund, where my coverage focused on technology companies, healthcare, and retail.
Subsequently, I have held roles in sell-side equity research, M&A, structured credit, securitizations, and lending across industries, with my coverage primarily focusing on private equity and credit funds. Most recently, I ran the capital markets group for HIG Capital, a global private equity firm. In 2019, I decided to go independent and established my own investment firm. At my firm, I use my knowledge of the global business and financial ecosystem to help our clients make informed decisions and maximize the value of their investments. I am committed to providing the best advice and guidance in order to help our clients achieve their goals.
Grit Daily: What areas do you like to invest in and why?
Kyle Fox: I am interested in investing in multiple areas, including renewables such as solar, wind, hydro, hydrogen, and methanol; real estate ranging from development to value-add and private equity; and the convergence of technology and sports. Investments in renewables and infrastructure projects can help to fund profitable projects that promote decarbonization and energy independence. Real estate investments provide strong risk/reward opportunities and can also be layered with sustainability elements.
Additionally, investing in sports technology such as AI cameras, streaming, e-sports, wearables, and marketplace building, as well as in sporting assets such as soccer, tennis, and basketball, is an attractive asset due to its non-correlated nature and the potential to generate more stable cash flows and analytics to improve performance and profitability. Investing in these areas requires a thorough understanding of the markets, strong industry relationships, and a targeted strategy. I am experienced in performing due diligence, market research, financial modeling, and developing investment strategies. I have also built a network of contacts with industry experts, including venture capitalists, angel investors, and private equity firms, to help identify high-potential investments. Additionally, I am highly knowledgeable in financial regulations, tax structures, and legal implications related to investments in each of these areas.
Grit Daily: What trends are you most excited about in Fintech?
Kyle Fox: FinTech / Open Banking is an important trend that is transforming the financial services industry by allowing customers to securely share their financial data with third-party providers. It is especially valuable to non-traditional borrowers and developing countries.
Fintech is a great investment because it offers a range of benefits to both businesses and consumers. For businesses, it provides access to new technologies and services that can help them reduce costs, improve customer service and increase efficiency. For consumers, it offers a range of innovative products and services that can help them save money, manage their finances and gain access to new financial opportunities. This data can be used to create new products, services, and experiences that make banking more efficient, personalized, and convenient.
AI and Machine Learning are revolutionizing the banking industry by automating processes, providing insights into customer behavior, and enabling more personalized customer experiences. Banks are using AI and Machine Learning to reduce costs, improve customer experience, and detect fraud.
Digital payments are becoming increasingly popular as they make it easier and faster to transfer money. Banks are using digital payment solutions such as mobile wallets and contactless payments to offer more convenient and secure payment options to their customers.
Blockchain technology has the potential to revolutionize the banking industry by providing a secure, immutable, and transparent ledger for financial transactions. Banks are exploring the potential of blockchain technology to create new products, services, and experiences for their customers. We are focused on the blockchain for marketplace building and payments, especially related to sporting assets.
Grit Daily: What led you to launch KFR Capital?
Kyle Fox: Starting your own financial service company can be a great way to tap into a lucrative, evergreen industry. As a financial service provider, you can source opportunities with exciting companies, be their strategic partners and help them achieve their financial goals. Additionally, you can customize your services to focus on a particular niche or target market, allowing you to stand out from the competition. When I migrated from London to the US my goal was to get up to speed in what was developing in technology. My research launched me on a path to invest in sports and renewables.
Grit Daily: How did that lead to KSC Sports?
Kyle Fox: Media, Digital, and Sport Asset investments provide investors with the potential to capitalize on the growth and increasing popularity of digital media. Investing in media and live content can provide investors with the potential to monetize content through new streaming services, as well as through advertising.
Investing in Web 3 provides investors with the potential to capitalize on the growth of the decentralized internet. Web 3 investments offer investors the opportunity to invest in an industry that is growing rapidly and provides investors with the potential to benefit from the growth of the technology and its applications.
Web 3 investments offer investors the potential to benefit from the development of new technologies, such as smart contracts and distributed ledgers, that are expected to have a significant impact on the way businesses and individuals interact with each other. Overall, investing in sports, media, web 3, and adjacent technologies is attractive for investors due to the potential for high returns, growth potential, and the chance to be at the forefront of new technological developments.
Investing in global sporting real assets such as soccer, tennis, basketball, and cricket can be attractive investments for a variety of reasons. It can offer the potential for long-term growth, as well as the potential for attractive returns. With a growing market and increasing demand from sponsors, media, and fans, investing in global sports offers the opportunity to diversify an investment portfolio, as it is different from other traditional investments. Investors capitalize on the growing popularity of the sport and tap into the large and increasingly engaged fan base, giving investors the chance to benefit from increased viewership and fan engagement.
Grit Daily: How do you see the convergence of Metaverse and Live sports going forward?
Kyle Fox: The convergence of Metaverse and Live sports has the potential to revolutionize the sports industry. Live sports could use the Metaverse to provide enhanced viewing experiences that offer fans new ways to engage with the action. Fans could watch multiple camera angles, interact with other viewers in real-time, access exclusive in-game content, and much more. Additionally, the Metaverse could also be used to create virtual stadiums, giving sports teams the opportunity to offer a fully immersive experience to fans worldwide. As the technology continues to advance, the possibilities of how the Metaverse can be used to enhance the sports viewing experience will continue to expand.
Grit Daily: What is the most important trend in sports for the next three years?
Kyle Fox: One of the most important trends in sports for the next three years is fan engagement. In today’s digital world, fans expect to engage with their favorite teams and athletes on multiple platforms, such as social media, streaming services, and mobile apps. Teams are responding by creating more interactive experiences for their fans, such as virtual reality technology, augmented reality, and interactive content. As teams continue to invest in technology and innovation, they will be able to better target and engage with their fan base, creating a deeper connection between teams and their fans.
Grit Daily: What is the value added from you and your firm to the sports industry?
Kyle Fox: At our firm, we have a deep knowledge of the sports industry, from the business and financial side to the competitive and performance side. We help our clients navigate the complex legal and financial aspects of the sports industry, advise on investments, and provide strategic and operational guidance to maximize success. We also help our clients identify new opportunities, leverage their assets and resources, and increase their bargaining power.
Our team is dedicated to creating unique marketing strategies and campaigns that engage with fans and generate results. We specialize in utilizing our vast network of relationships in the sports, music, culture, and culinary industries to create custom experiences for our clients. By leveraging our knowledge of the industry, we are able to create innovative campaigns that drive results. We also offer comprehensive analytics and insights to help clients make informed decisions. Our team is committed to providing our clients with the highest level of service and delivering results. We strive to be a trusted partner and collaborative consultant, helping clients reach their goals.
Our team is passionate about helping clients achieve success in the sports, music, culture, and culinary industries. Our mission is to be the foremost leader in creating innovative marketing campaigns and experiences that engage fans and drive results. We strive to be a reliable resource for our clients, providing them with the highest level of service and delivering exceptional results.
Layering technology in sports can have a variety of applications. One example is the use of virtual reality (VR) technology to simulate a real-world sports environment, allowing athletes to practice in a realistic setting. Wearable sensors can also be used to track performance metrics such as speed, acceleration, and heart rate. Data analytics can be used to identify trends and patterns in a player’s performance and suggest improvements. Finally, artificial intelligence (AI) can be used to automate aspects of coaching, such as providing feedback in real-time or automating video analysis.
Grit Daily: What is the advantage of having a fractional ownership model?
Kyle Fox: The main advantage of fractional ownership is that it allows people to purchase a share in an expensive asset, such as a vacation property, boat, or aircraft, without having to invest the full amount. This makes it possible for more people to access these types of luxury items. Additionally, it also allows for more diversification of ownership, which can be beneficial for asset management.
Grit Daily: What trends are you seeing in Latin America that could go global in the next few years?
Kyle Fox: The rise of fintech. The emergence of new financial technology (fintech) companies in Latin America is transforming the way people access banking services, make payments, and invest their money.
The growth of e-commerce in Latin America. LatAm countries have become important players in the global e-commerce market, thanks to the rapid adoption of digital technologies and the increasing availability of online shopping options. This trend is likely to go global in the near future.
There is an increased focus on sustainability, and Latin American countries are leading the way in the global push for sustainable development, with initiatives like the Sustainable Development Goals (SDGs) and the Paris Agreement on Climate Change. This trend is likely to spread globally in the coming years.
The sharing economy has taken off in Latin America, with services such as Uber, Airbnb, and others becoming increasingly popular. This trend is likely to spread globally in the near future.
Grit Daily: How are you investing in AI and Machine learning in Sports?
Kyle Fox: First, Improved Performance Analysis: AI and machine learning can help coaches and athletes analyze their performance in real time and understand how to improve their performance. By learning from past performance, it can be used to identify areas of improvement and make strategic decisions.
2. Enhanced Scouting and Recruiting: AI and machine learning can be used to optimize scouting and recruiting processes. By analyzing data from past performances and players, AI can help scouts and recruiters find the best players for their team.
3. Increased Fan Engagement: AI and machine learning can help teams increase fan engagement by providing personalized content and experiences. For example, AI can help create engaging digital experiences for fans that can help increase their loyalty to the team.
4. Improved Injury Prevention: AI and machine learning can help teams prevent injuries by predicting and analyzing player performance and health data in order to identify potential injury risks. By monitoring players more closely, teams can help prevent injuries and improve player safety.
5. Better Equipment and Gear: AI can help teams optimize their gear and equipment performance by analyzing data from past performances and understanding how to adjust the gear and equipment to improve performance.
Grit Daily: What is the role of social impact and philanthropy in Sports?
Kyle Fox: Social impact and philanthropy have become increasingly important in the sports world. Professional sports teams, athletes, and leagues have become more focused on making a positive impact in their communities. They have implemented initiatives and programs to help address local needs and create a lasting and meaningful impact.
Some teams have formed their own foundations to manage donations and grants, while others have partnered with existing organizations to help fund initiatives. The funds are often used for initiatives that support youth development, education, health and wellness, and economic development.
Social impact and philanthropy have also become important parts of athletes’ personal brands. Many athletes have used their platforms and influence to raise awareness and funds for various causes, which has helped to create positive change in their communities.