The Aston Martin Formula One team is to set a new valuation benchmark by selling a large stake to two of the world’s most prominent investment funds.
Sky News can exclusively reveal that HPS Investment Partners, a US-based firm which manages roughly $115bn (£87.6bn) in assets, and Accel, one of the giants of the Silicon Valley venture capital sector, are on the verge of investing hundreds of millions of pounds into the team’s holding company.
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Sources close to the sport said an investment by Accel and HPS was expected to value Aston Martin F1 at between £1.5bn and £2bn.
One insider said the deal was expected to be announced shortly.
As part of its investment, HPS, which is reportedly expected to be valued at more than $10bn when it floats in New York, is understood to have agreed to refinance debt attached to Aston Martin F1’s technology campus at Silverstone.
The site opened last year.
Accel is one of the world’s best-known venture capital funds, having backed companies such as Facebook at an early stage.
If confirmed, the deal would be the latest transaction orchestrated by Aston Martin’s billionaire controlling shareholder, Lawrence Stroll, who has pumped vast sums into James Bond’s preferred car manufacturer in a bid to make it sustainably profitable.
Last year, Mr Stroll sold a minority stake in the F1 team to Arctos Partners, a sports-focused private equity investor.
One person close to Aston Martin F1’s shareholder base said the latest stake sale would see the new investors acquiring between 20% and 25% of AMR GP Holdings Limited, the team’s parent company.
The person added that Aston Martin had been advised on the deal by The Raine Group, the merchant bank which acted on the sale of Chelsea Football Club and a stake in Manchester United Football Club to Sir Jim Ratcliffe.
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The Aston Martin Aramco Mercedes team sits in fifth place in the F1 constructors’ championship, with veteran driver and former World Champion Fernando Alonso in 9th place in the drivers’ standings.
Team-mate Lance Stroll – Lawrence’s son – is a further place back with 24 points.
News of the incoming shareholders comes as the Aston Martin team prepares to unveil the legendary F1 designer Adrian Newey as a member of its senior team.
Mr Newey has helped to orchestrate a deluge of championship-winning cars for teams including Williams and Red Bull.
His arrival, which is expected to be announced ahead of the Azerbaijan Grand Prix in Baku next weekend, will fuel expectations that the team can begin challenging at the end of the F1 grid.
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The Times reported this week that Mr Newey would be handed shares in Aston Martin as part of his remuneration package.
He announced his departure as Red Bull Racing’s chief technical officer earlier this year.
Aston Martin is not the only F1 team to have brought in external private equity shareholders, with McLaren having sold a stake to MSP Sports Partners in 2020.
A spokesman for the Aston Martin Aramco F1 team was not immediately available for comment, while HPS declined to comment and Accel did not respond to a request for comment.
Shares in Aston Martin, the road car manufacturer, closed on Friday at 149.7p, valuing the company at about £1.25bn.
The stock has more than halved over the last 12 months.
Mr Stroll continues to own a sizeable stake in the London-listed company.
Content Source: news.sky.com