Reports: K-12’s PSF Corp. Makes Huge College Sports Investment

The Texas Permanent School Fund (PSF) has a major stake in a $500M investment in top-tier college sports programs, various media outlets are reporting.

On Monday, Sports Business Journal was among the first to report that the sports-focused equity firm Elevate College and Global Marketplace (a/k/a Elevate) is set to announce the creation of the College Investment Initiative, a $500M initiative backed solely by private equity firm Velocity Capital Management and the PSF Corp.

The PSF Committed $200M

The PSF, in December 2024, was announced as Velocity’s major backer — and holds an ownership stake in the firm — having committed $200M to the company, reports reflect.

The Elevate investment vehicle will provide a new funding source for collegiate athletics programs pursuing capital-intensive projects like facility upgrades and renovations, the publication reported.

Elevate says two universities have already signed deals with the new fund, but did not elaborate further.

• Note: The PSF currently lists total assets valued at over $62 billion, and currently backs nearly $129 billion in school district bonds.

NIL Lawsuit Settlement

The news comes on the heels of last Friday’s final approval by a federal judge in California greenlighting the House v. NCAA name, image, likeness (NIL) landmark settlement agreement requiring colleges to share revenue with their athletes.

New Texas Law

Gov. Abbott last week signed HB126, allowing Texas public colleges to be able to enter into NIL deals with college athletes directly, ending the ban on colleges paying athletes. The new Texas law, that became effective upon the governor’s signature, allows athletes over age 17 who have enrolled in college to sign deals, but the right does not extend to high school students, Sports Illustrated reported.

The Houston Chronicle has posted a follow-up article about the Elevate deal here.