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China’s Grassroots Sports Pivot Fuels a Private Equity Bet on Pickleball

  • investment33
  • Mar 12
  • 3 min read

By SK Lee


As China rolls out its blueprint to become a global sports powerhouse, a hybrid of tennis, badminton, and ping-pong is emerging as an unlikely beneficiary of Beijing’s policy pivot.

Pickleball, currently the world’s fastest-growing sport, is catching the attention of both state planners and private capital. As Beijing shifts its focus from an elite, podium-driven model toward mass fitness and grassroots athletics, investment firms are betting that the sport’s low barrier to entry could reshape the region’s leisure and tourism sectors.


China’s 15th Five-Year Plan (2026-2030) places a premium on public health infrastructure. A cornerstone of this initiative is the “15-minute happiness circle,” a mandate to ensure gyms, courts, and parks are accessible within a 15-minute walk for urban residents. The government is also explicitly championing grassroots phenomena—such as local village basketball and city football leagues—favoring organic community engagement over manufactured academy programs.


Capital is following the policy shift. Domestic sports spending has jumped 38% since 2020, with sectors like the ice and snow market now surpassing 1 trillion yuan ($138 billion). To sustain this momentum, China’s sports ministry has pledged to double down on the industry’s commercial development over the next five years.


“We will offer more policy guidance to support and promote the integrated development of outdoor and leisure sporting events with tourism and culture experience,” the sports minister recently announced, emphasizing the need for high-level international events and standardized industry benchmarks.


Macro Tailwinds and Diplomatic Volleys

This domestic push aligns seamlessly with pickleball’s meteoric global rise. In the U.S., participation has surged 311% over the past three years, with the market projected to hit $2.03 billion by the end of 2026. The sport is rapidly shedding its status as an American niche, evidenced by the World Cup of Pickleball expanding from 32 to 78 participating countries in a single year.


In Beijing, the sport has even taken on a geopolitical dimension. President Xi Jinping recently highlighted pickleball as “a new bond for youth exchanges between China and the United States,” expressing hope that young players could serve as “a new generation of envoys for friendship.” With youth training programs rapidly expanding, analysts are already drawing parallels to China’s historic dominance in table tennis.


The Institutional Play

For global investors, sports have increasingly become a resilient asset class amid broader economic uncertainty. Private equity giants are actively deploying capital into the space.

Josh Empson, a partner at Sixth Street Partners—which manages over $115 billion and holds stakes in franchises like the San Antonio Spurs—recently noted that “Asia has to be a focus for anyone investing in sports and entertainment,” citing the region’s untapped growth. Ares Management, with $595 billion in assets, has similarly ramped up its sports infrastructure bets, while Goldman Sachs reports that 25% of family offices have now invested in sports or related assets.


“The global sports ecosystem has been underpriced and misunderstood for years,” a recent Goldman Sachs report stated, pointing to consumer engagement and media rights as key valuation drivers.


Regional Execution

In Asia, regional family offices are moving to capitalize on these macro trends. Hong Kong-based TGG Group, which typically focuses on tech and lifestyle investments, has identified pickleball as a scalable asset that dovetails with China’s public health mandates.


Rather than merely sponsoring events, TGG has opted to build an integrated commercial ecosystem. Through its sports arm, LIT Sports Global, the firm recently acquired the local TLP Pickleball Association and signed top-ranked regional players—including World Pickleball Championships (WPC) Asia Men's and Global Men's No. 1 Ryan Lam—to professional contracts.


The firm now operates and supports over 25 venues across Hong Kong and the Greater Bay Area, with active expansions into Shenzhen and Zhongshan. Recent tournaments hosted by the group have drawn hundreds of international competitors, signaling a growing sports-tourism pipeline.


TGG is also leveraging the sport for its ESG and community initiatives. Its “Picklemind Programme,” a collaboration with the youth-focused NGO CityLab, integrates sports education with mental health and developmental training for Hong Kong students.


Industry projections suggest the global pickleball player base could swell from 40 million to 300 million over the next five years, with China alone targeting 100 million participants. As Beijing continues to integrate grassroots sports with domestic tourism, the broader economic opportunity could reach into the trillions of yuan. For investors positioning themselves early in the Asian market, the sport offers a unique blend of high-growth potential and alignment with state-backed demographic goals.




 
 
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