Aston Martin has recently announced that they will be selling a minority shareholding in their Formula 1 team, AMR Holdings GP Limited, to Arctos Partners, a multi-billion dollar private investment firm.
Although the percentage and value of the sale have not been disclosed, it is expected to be finalised by the end of the year and will reportedly value the F1 team at $1 billion.
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This marks the first time Aston Martin has taken on new investors since the team’s inception in 2018 when a consortium of investors led by Canadian billionaire Lawrence Stroll acquired Force India and rebranded it as Racing Point. Stroll went on to invest £182 million into the Aston Martin car company in 2020, becoming executive chairman and rebranding the F1 team as Aston Martin for the 2021 season.
In addition to the financial benefit of the sale, Aston Martin notes that Arctos will provide them with “deep sports industry knowledge and a robust network of influential relationships to support its continued growth.”
Arctos is a US-based investment firm with stakes in at least 20 different sports teams and disclosed assets of $6.64 billion as of the end of 2022. Their portfolio includes MLB, the NBA, MLS, NHL, and European football investments.
Stroll said: “I am delighted to welcome Arctos Partners as a new partner and minority shareholder in the Aston Martin Aramco Cognizant Formula One Team.
“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 sees 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.”
The F1 team has received substantial investment from Stroll, who contributed £200 million towards expanding their factory near the Silverstone Circuit.
Despite an impressive start to the 2023 season, errors in the development process have caused the team to fall behind as the season nears its end.
Arctos Partners representatives have refused to disclose the details of the financial arrangement between them and AMR GP, including the percentage of the team ownership that has been transferred.
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