Arctos Partners has acquired a minority shareholding in AMR Holdings GP Limited – the parent company of the Aston Martin F1 team – it has been revealed.
Formula 1 is in Las Vegas this weekend ahead of the highly anticipated inaugural race around the streets of the iconic American city, and news has broken that sports-focused private equity group Arctos Partners is investing in the Aston Martin F1 team.
The deal, due to be completed by the end of the calendar year, reportedly values the team at $1bn, as per the Financial Times, with the investment also the first time that team owner Lawrence Stroll has brought in outside money to the team in such a manner.
Rumours have circulated this year that Stroll might be considering selling up the team entirely but this deal stops short of seeing that happen and suggests he may continue in his role for the time being at least.
Stroll also holds the largest stake in the Aston Martin car manufacturer business, and has said that Arctos will bring “deep industry knowledge” and that he was “delighted” that the F1 team has joined the private equity firm’s “prestigious portfolio” of investments.
“I am delighted to welcome Arctos Partners as a new partner and minority shareholder in the Aston Martin Formula 1 Team,” he said in a statement.
“As investors in several leading sports franchises, Arctos brings deep industry knowledge, and I am thrilled that Aston Martin will be joining such a prestigious portfolio.
“The team has enjoyed tremendous success this season with eight podium finishes and our biggest points haul as a team, but our collective ambition is greater.
“Arctos see the potential and value of this project as we continue to build a world-class Formula 1 team.
“They share our vision for our ultra-luxury brand, and they are extremely passionate about the sport and its prospects.
“We are investing in infrastructure, people and processes, and this is the perfect time to add strength in depth with the operational expertise and strategic experience of Arctos.
“Together, we will continue to drive this team forward and build an even brighter and successful future.”
Saudi Aramco, a partner of the team, has rights to buy 10 per cent of the outfit in the future but does not currently hold a stake.
As for Arctos, this is by no means their first venture into sport. They own stakes in a number of different sporting organisations, across football, basketball, and baseball, with them having a minority stake in Fenway Sports Group, who own Premier League giants Liverpool as well as iconic Major League Baseball team the Boston Red Sox.
Doc O’Connor, managing partner at Arctos, said that the deal was “the beginning of a long-term partnership with Lawrence and the entire organisation” and that the firm will provide extensive resources to enhance the team’s “reach and brand.”
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