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Arctos Partners, the sports-focused private equity group, has invested in Aston Martin’s Formula One team on the eve of F1’s return to Las Vegas in a deal that values the racing unit at about £1bn.
The investment is the first time that team owner Lawrence Stroll, who is also the largest shareholder in the listed Aston Martin carmaker, has tapped outside investors for the F1 team in which his son, Lance, races.
Under the deal, announced ahead of the Las Vegas Grand Prix this weekend, Arctos will take a “minority shareholding” in AMR Holdings GP Limited, the team’s holding company. Financial terms were not disclosed, although the arrangement values the team at about £1bn, according to one person with knowledge of the deal.
While Saudi Aramco is a named partner of the team, the state oil group does not hold a stake in the business, although it has the rights to buy 10 per cent of the unit in future.
Stroll said Arctos brought “deep industry knowledge” and that he was “delighted” Aston had joined “such a prestigious portfolio” of investments.
Arctos owns stakes across a variety of sports, ranging from football to basketball and baseball, including a minority stake in Fenway Sports Group, the owner of Liverpool football club and the Red Sox baseball team.
Doc O’Connor, managing partner at Arctos, said the deal was “the beginning of a long-term partnership with Lawrence and the entire organisation”.
Arctos will “provide extensive resources to enhance” the team’s “reach and brand”, the former executive at Madison Square Garden and Creative Artists Agency added.
F1 team valuations have soared since Stroll bought his team, originally called Force India then rebranded as Racing Point, in 2018. The team was renamed Aston Martin in 2021.
The Arctos deal comes after Renault’s Alpine outfit was valued in June at about $900mn, as AC Milan owner RedBird Capital Partners, Otro Capital and Hollywood actor Ryan Reynolds took a 24 per cent stake.
Sir Jim Ratcliffe’s Ineos completed the acquisition of a third of the Mercedes F1 team for £208mn in January 2022, according to UK Companies House filings, although the deal was agreed in December 2020.
US investment group Dorilton acquired the Williams team in a €152mn deal in August 2020, while McLaren sold a stake to MSP Sports Capital and other investors at a valuation of £560mn in December that year.
Recent investments come as F1 gains in popularity under the ownership of US group Liberty Media, which is controlled by telecoms billionaire John Malone. Almost seven years since buying F1, Liberty Media has transformed its fortunes in the US and built the sport’s popularity with young people.
Investors are pouring money into teams thanks to F1’s growth and the implementation of spending limits that cap the amount of money they can throw at car development. The financial regulations and the scarcity of teams — there are only 10 — have also led to increased valuations.
F1’s return to Las Vegas after a four-decade absence follows the addition last year of a race in Miami.