Saudi Public Investment Fund buys stake in McLaren

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McLaren Group announced Friday an equity investment of 550 million pounds ($758 million), the majority of which will come from Saudi Arabia’s Public Investment Fund and global investment firm Ares Management.

The McLaren Group includes British supercar manufacturing in addition to McLaren A competitor in Formula One and Indy racing in the United States, it will also enter the Extreme E electric off-road series next year.

McLaren said the investment fund and Ares offered 400 million of new capital, in the form of preferred stock and non-compulsory capital options.

The remainder will come from existing shareholders in the form of convertible preferred shares, allowing the repayment of a loan I took in June last year from the National Bank of Bahrain.

Bahrain’s Mumtalakat Sovereign Investment Fund is the largest shareholder in McLaren, with a 62.55% stake, according to its website.

Paul Walsh, CEO of McLaren Group, said: “Following the strategic investment in Racing that we made last year, this successful capital raising is a key factor in our overall financial strategy to support the group’s sustainable growth plans.

With such strong organizations now in place, we are well positioned to realize our ambitions as a global luxury supercar company and among the motorsport elite, with cars being the engine of McLaren’s core profits.”

McLaren acquired £300m from existing shareholders in March 2020, and in April completed a £170m sale and leaseback transaction at its Boeing headquarters.

And US-based investment group MSB Sports Capital acquired a large minority stake in McLaren Racing last December in a deal that brought in 185 million pounds and eased the pressure caused by the Covid-19 pandemic.

Car revenue in the first quarter of this year amounted to 170.5 million pounds, an increase of 145% over the same period in 2020, which was affected by the pandemic.





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