Working at the intersection of Real Estate and Finance| Looking to connect with Private Equity Funds, Family Offices and UHNIs with a focus on Real Estate Investment for Stable Returns and Capital Appreciation
Mumtalakat the SWF of Bahrain completes a full takeover of Mclaren Group which owns the majority shares in the flamboyant Mclaren F1 team. The Story: 📌 McLaren Group announced that Bahrain's Bahrain Mumtalakat Holding Company ("Mumtalakat") took full ownership of share capital after converting preference shares to ordinary shares. 📌 AUDI AG was another contender for a new infusion in #Mclaren Group that dropped its plans and saw Mercedes-Benz AG turning long-term engine supplier 📌 Mclaren is delighted to have strengthened its longstanding relationship with Mumtalakat Holding Company, the #sovereignwealthfund of #Bahrain that will bring in better governance and focus on delivering long-term business plans, including investment in new products and technologies 📌 #McLarenRacing CEO Zak Brown extended its contract until 2030 which talks about the long-term vision in F1 The Backstory 📌 Mumtalakat acquired a 30% stake in McLaren from former chairman Ron Dennis and the late Mansour Ojjeh in 2007 and has been a key partner since. 📌 The #supercar maker was long under the clutches of financial instability especially during COVID-19 when it took out a £150million loan with the National Bank of Bahrain, sold a stake in its #F1 team, and worked on a sale and leaseback deal of its renowned Technology Centre factory to further cut down a 1000 jobs. This was also possible due to the new budget cap regulations from F1 to reduce the spending by each team and bring in parity. The Positives: 📌 The Bahrain International Circuit was the first one in the #MiddleEast to host a Grandprix in April 2004 paving the way for other #MiddleEastern countries to follow suit. 📌 Apart from #Bahrain, the Middle East also hosts a bunch of races with #Qatar, #SaudiArabia, #Abudhabi in #UAE and #Azerbaijan (Blurry Lines on inclusion) in an attempt to push #tourism and diversify from oil dependency. 📌 The move will also see other #SovereignWealthFunds jumping in with similar deals given the plush purse they garner as #SWFs. The Negatives: 📌 The races in the Middle East have long been under the scanner on account of human rights activists calling out Liberty Media as an opportunist paying no attention to criticism but only money. About Formula1: 📌 Liberty Media purchased Formula 1 from CVC Capital Partners at $8 Billion of enterprise value in 2016. CVC bought the #sport for $1.7 Billion in 2006 and managed to grow it fourfold in a decade 📌 Their partnership with Netflix on introducing #drivetosurvive had brought them and newer and younger fanbase cutting down the stagnation in growth. 📌 CVC also owns the Gujarat Titans franchise in the Indian Premier League India. I am Faraz Wadhwania, I write about #startups, #vcfunding, #investments #fundraising, #venturecapital, #privateequity,#familyoffice etc. React/Share + Follow + Send Connection Request + 🔔 Note: The image is from BIKC with the McLaren-Mercedes F1 Car during my last visit.
MASROOR HUSSAIN
9mo
Nice Share ! Faraz Wadhwania
4x Founder | 9th pan-India "Brain Box" podcast by Spotify, 2022 with 150K+ Audience | 360° PR & Personal Branding Agency with 150+ clients | 2 Decades in Sales & Marketing
9moWas a great 3-4 for them today also, though was hoping Lando would have taken 2nd.. but power on McLaren!