RIYADH — Thomas H. Rudy, Chief Investment Officer at IeAD Sports & Health Tech Partners in Orlando, Florida, provides an insightful overview of the evolving landscape of sports and health investments during an interview with TRENDS.
Sharing his experiences and observations from the 2023 FII conference, Rudy notes its unique focus and value amidst a changing global economic climate. He delves into his company’s strategic investments, particularly in the health and sports sectors, underscoring a growing interest in these areas within North America and Europe.
He also discusses the expansive market potential in Saudi Arabia, influenced by major projects and Vision 2030 goals, and how this aligns with their long-term investment perspective.
Rudy highlights the transformative role of digitalization and AI in both sports and health investments, envisioning significant advancements and synergies in the coming years. His insights offer a glimpse into the future of investments in these dynamic sectors, reflecting on the potential shifts and opportunities on the global stage.
Excerpts:
Q: What is your feedback on the 2023 FII conference?
A: The FII conference this year [seventh edition] contrasts with the last two years. Having attended six of the last seven editions, I’ve noticed that it feels more focused and somewhat smaller than last year, which I think reflects the current global macroeconomic climate. Despite this, the conference still hosts all the leaders one would hope to see. Every attendee here could be a keynote speaker at another event. From a value standpoint, it makes a lot of sense for us to be here. It has been a fantastic event.
Q: What’s new with your company and the investments you are making in HealthTech?
A: We invest in health and sports globally, with a particular focus on North America and Europe, aligning with our investors’ locations. However, we’ve observed a growing interest in sports investments in this region. What started a few years ago with golf has now expanded to football, or soccer as Americans call it, bringing significant capital and stardom to the region.
We invest in health and sports globally, with a particular focus on North America and Europe, aligning with our investors’ locations. However, we’ve observed a growing interest in sports investments in this region
Thomas H. Rudy, Chief Investment Officer at IeAD Sports and Health Tech Partners
For us, this market is incredibly interesting. We believe the region will continue to leverage the technology we invest in for value creation. We’re looking forward to finding more investment opportunities here as the PIF opens up these areas for private sector participation.
Q: How large is the market size you are targeting?
A: The market in Saudi Arabia is almost limitless, particularly with the giga-projects underway, the scope of which is still unfolding. While Vision 2030 provides a roadmap, we are curious about what 2040 will bring. As early-stage investors, our perspective often spans at least seven years, sometimes extending to 10 years or more. We’re looking at what the next 10 to 20 years might hold. This region represents a new future. My background includes being born and raised in Germany and now living in the United States. The global dialogue, especially regarding where the world is moving, seems to be shifting focus away from Europe. Regions like Africa, the Middle East, Australia, and North America are finding new ways to progress without significant European involvement. This shift indicates a paradigm change, and the Kingdom of Saudi Arabia is very much a part of this new reality.
Q: How do you think digital transformation and AI are affecting investments?
A: In our sector, the impact is going to be significant. AI will likely play a major role in the world of sports, both positively and negatively. On the positive side, AI could lead to improved results and performance optimization, as well as better talent selection. However, I foresee a potential negative impact on the sports betting industry. AI might become so adept at predicting game outcomes that betting could lose its appeal, or there might no longer be players offering such services.
The market in Saudi Arabia is almost limitless…We’re looking at what the next 10 to 20 years might hold.
Thomas H. Rudy
In the health sector, the benefits of data analysis through AI are immense. It could lead to breakthroughs in curing incurable diseases, developing new solutions, and faster data analysis. AI’s efficiency in process-driven tasks allows the brilliant minds in the field to concentrate more on developing solutions and content.
Q: How are you balancing your investments with digital transformation? Are you using these platforms to invest more efficiently?
A: We are definitely leveraging these platforms more efficiently and are also investing in clusters. This means that we’re focusing on companies that may work in recovery or regulated health spaces, where there could be synergistic opportunities. This approach opens the possibility for future mergers and acquisitions within our portfolio, providing both stronger and weaker companies with opportunities to thrive longer under different entities. We view digital transformation as a key driver of value, attracting consumer interest and enhancing end products. Ultimately, it’s the platform that enables us to build the portfolios we’re aiming for.
Q: Do you believe Saudi Arabia will become a major player in health and sports investments?
A: Absolutely, I am 100% convinced of this. Golf is a prime example of how Saudi Arabia has made a global impact quickly. Now, with football, we’ve seen similar efforts in other countries. For instance, sovereign wealth funds have entered the Premier League, Major League Soccer has attracted a few stars, and China has also made significant investments, albeit short-lived. I believe the commitment of the Public Investment Fund (PIF) in this region to sports and sports investments will lead to sustainable growth. As a European who enjoys watching European football, it might take some time to get used to new dynamics in the sport. However, I believe that in 10 years, watching a match in this region will be as normal as watching an Italian match today, even for our children.
Q: How do you see the next five years in terms of the investment market, especially in sports and health investments?
A: In the next five years, I anticipate tremendous growth in the values of sports teams globally. This is because sports represent a live asset, and sports rights remain highly valuable in a content-driven world. Unlike TV shows available on numerous platforms, a live sports event is unique every time, and its rarity adds to its value. As demand increases and supply remains fairly stable, the value of these assets is likely to continue to rise. We expect to benefit greatly from this trend.
In terms of health investments, I foresee mergers with adjacent markets like sports health, which is a significant focus for us. We also expect to see a convergence between the regulated health sector and the consumer health market. For example, devices like the Whoop, which I wear on my wrist to monitor heart rate and recovery, are likely to evolve into FDA-approved medical devices. In the future, such devices could offer advanced functionalities, essentially acting like a doctor on your wrist. These devices are set to become smarter and more accurate, going beyond their current capabilities.