The McLaren Group has announced this morning that it has attracted new long-term investment into McLaren Racing to help it “continue its growth as a global sports franchise” in Formula One and beyond.
The fresh round of investment is coming from MSP Sports Capital, a US-based sports investment group, which is co-investing with UBS O’Connor, LLC and The Najafi Companies, a Phoenix-based private equity firm.
Via the transaction, MSP Sports Capital will acquire a minority shareholding in McLaren Racing, while the McLaren Group will maintain its position as its majority shareholder.
Specifically, MSP Sports Capital will invest £185m into McLaren Racing to acquire an initial 15 percent stake that will increase to up to a 33 percent holding by the end of 2022.
The transaction gives McLaren Racing a total post-money valuation of £560mn.
Noteworthily, McLaren Racing CEO Zak Brown will maintain his post, while Paul Walsh will sit as chairman of McLaren Racing, and Jahm Najafi and Shaikh Mohammed bin Essa Al Khalifa will become vice-chairmen.
Furthermore, as part of the deal, Jeff Moorad of MSP Sports Capital and Rodrigo Trelles Zabala of UBS O’Connor have been appointed to the board of directors of McLaren Racing, alongside Sultan Ojjeh and Will Griffiths of the McLaren Group.
The Woking-based automaker stressed that McLaren Automotive remains wholly owned by the McLaren Group and will not be affected by the transaction in any way.
Zak Brown described the investment as “a key moment in the progress of McLaren Racing” and said it will help the team achieve long-term success in Formula One and IndyCar.
“MSP Sports Capital is first and foremost a sports investor. They know the market and their team has considerable experience and proven success in global sports properties,” Brown said.
“They are a partner as much as a shareholder, with the ability to leverage their network and knowledge for the long-term benefit of McLaren Racing.
“This new investment bolsters our plan to return McLaren to contention for race wins and championships in Formula 1 and IndyCar, and will strengthen our positive momentum as we continue to focus relentlessly on our mission to return to the top of the podium,” he added.
Meanwhile, Jeff Moorad, principal at MSP, said they are “committed to assist the team in accomplishing its objective of returning to the front of the grid.”