BAHRAIN’S sovereign wealth fund Mumtalakat and Abu Dhabi’s CYVN Holdings have acquired full ownership of McLaren Racing in a deal reportedly valuing the reigning Formula One champions at more than $4 billion.
The McLaren Group confirmed the purchase of all shares held by minority investors including MSP Sports Capital, O’Connor Capital Solutions, Ares Sports, and Caspian Funds.
Sky News reported the sale of the 30% stake would value the team at more than three billion pounds ($4.05 billion).
Bahrain’s Mumtalakat will remain the majority shareholder while CYVN, majority-owned by the Abu Dhabi government, will hold a non-controlling stake.
CYVN created McLaren Group Holdings last April after completing its acquisition of sportscar maker McLaren Automotive.
McLaren Racing operates teams in Formula One and IndyCar series and will enter the World Endurance Championship from 2027.
US-based investment group MSP and others acquired a significant minority stake in 2020 when McLaren needed funds during the COVID-19 pandemic.
That deal, for a maximum 33% stake by 2022, valued the British racing team at 560 million pounds at the time.
McLaren has since emerged as a dominant force, winning last year’s constructors’ title for the first time since 1998 and leading both championships this season.
“Our suite of minority investors came on board in 2020 and we thank them for their tremendous support over the past few years,“ said McLaren Group Executive Chairman Paul Walsh.
He stated the simplified ownership structure “strengthens our ability to future-proof the business and capture new growth opportunities.”
MSP Sports Capital CEO Jeff Moorad and chairman Jahm Najafi will vacate their seats on the McLaren Racing board.
Ares Management confirmed transaction proceeds “will be used to return capital to investors and further strengthen its position as an experienced investor across the sports ecosystem.” – Reuters