Abu Dhabi, Bahrain wealth funds take full ownership of McLaren Racing

Abu Dhabi's CYVN Holdings and Bahrain's Mumtalakat took full ownership of McLaren Racing on Tuesday in a deal one informed source said valued the reigning Formula One world champions at $5 billion.

A McLaren Group statement confirmed the purchase of all shares held by MSP Sports Capital, funds managed by O’Connor Capital Solutions, Ares Sports, Media and Entertainment funds and Caspian Funds.

MSP said the terms of the transaction would remain confidential.

Sky News, citing sources, earlier reported the sale of the 30% stake would value the team at more than three billion pounds ($4.05 billion).

One source with knowledge of the details suggested to Reuters the figure was $5 billion.

Bahrain sovereign wealth fund Mumtalakat will remain the majority shareholder with CYVN, majority-owned by the government of Abu Dhabi, having a non-controlling stake.

CYVN created McLaren Group Holdings last April after completing its acquisition of sportscar maker McLaren Automotive.

McLaren Racing runs teams in Formula One, US-based IndyCars and will enter the World Endurance Championship from 2027.

US-based investment group MSP and others took a significant minority stake in 2020, when McLaren were in need of funds during the COVID-19 pandemic.

The deal, for a maximum 33% stake by 2022, valued the British racing outfit at £560 million at the time.

Since then McLaren have emerged as a dominant force in the sport, winning the constructors' title last year for the first time since 1998 and on course to win both titles this season with Oscar Piastri leading Lando Norris.

Formula One's popularity is also enjoying a global surge, boosted by Netflix docu-series 'Drive to Survive' and Brad Pitt's recent Hollywood blockbuster movie F1.

"Our suite of minority investors came on board in 2020 and we thank them for their tremendous support over the past few years as we set McLaren Racing on a path to commercial growth and financial stability," said McLaren Group Executive Chairman Paul Walsh.

He said 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 said in a statement the proceeds from the transaction "will be used to return capital to investors and further strengthen its position as an experienced investor across the sports ecosystem".

Reuters