Bahrain’s Mumtalakat and Abu Dhabi’s CYVN Holdings assumed full control of McLaren Racing on Tuesday in a landmark deal reportedly valuing the reigning Formula One world champions at $5 billion, according to an informed source.
A statement from McLaren Group confirmed the acquisition of all shares previously held by MSP Sports Capital, O’Connor Capital Solutions-managed funds, Ares Sports, Media and Entertainment funds, and Caspian Funds. MSP said the financial terms of the transaction would remain confidential.
Earlier, Sky News, citing sources, reported that the sale of the 30% stake implied a team valuation exceeding 3 billion pounds ($4.05 billion). A source familiar with the deal’s details suggested to Reuters that the figure was $5 billion.
Bahrain’s sovereign wealth fund Mumtalakat will remain the majority shareholder, with CYVN, majority-owned by the government of Abu Dhabi, holding a noncontrolling stake. CYVN created McLaren Group Holdings last April after completing its acquisition of sportscar maker McLaren Automotive.
McLaren Racing runs teams in Formula One and U.S.-based IndyCar and is set to enter the World Endurance Championship in 2027.
U.S.-based investment group MSP and others took 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 outfit at 560 million pounds at the time.
Since then, McLaren has emerged as a dominant force in the sport, winning the constructors’ title last year for the first time since 1998 and is on course to win both titles this season with Oscar Piastri leading Lando Norris.
Formula One’s popularity has also surged globally, boosted by the Netflix docuseries Drive to Survive and Brad Pitt’s recent Hollywood blockbuster 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 that 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.”
