Marc Lasry, the billionaire co-founder of Avenue Capital Group, said he expects investments in upstart sports leagues like pickleball may offer a higher rate of return to investors than NBA teams.

“There’s massive opportunities in sports — but I think those opportunities are in smaller teams,” Lasry said Wednesday in an interview on Bloomberg Television, noting they could be in Europe and Asia.

Lasry agreed to sell his 25% stake in the Milwaukee Bucks this year in a transaction that values the National Basketball Association team at about $3.5 billion. He said that while he thinks valuations in the league will continue to rise, it was the “right time to sell.”

Lasry, 63, has said he plans to raise a sports fund that would look to acquire stakes in teams and adjacent sports businesses. He bought a Major League Pickleball team along with former tennis star James Blake for $100,000 before the league launched in 2021.

“Today it’s $10 million,” he said in the interview.

He said he doubts the Bucks will increase in value at a similar rate over the next five to 10 years.

Lasry, whose New York-based firm specializes in distressed debt, said that Avenue Capital is benefiting from regional banks curtailing lending by being able to offer private credit loans at higher interest rates.

Still, he said he ultimately expects a mild recession.

“You’re going to have more bankruptcies, you’re going to have more problems,” he said. “That’s why the Fed is going to lower rates. They’re going to have to.”