McLaren Group announced on Friday an investment in equity worth £550 million ($758 million), mostly coming from the Saudi Public Investment Fund and global investment firm Ares Management. The McLaren Group includes the British supercar manufacturer as well as the McLaren racing team competing in the Formula 1 World Championship and IndyCar races in the United States, and it will also participate in the Extreme E electric off-road series next year.
McLaren stated that the investment from the Fund and Ares amounted to £400 million of new capital in the form of preferred shares and non-mandatory purchase options in the capital. The remaining amount will come from current shareholders in the form of convertible preferred shares, allowing for the repayment of a loan obtained in June last year from the National Bank of Bahrain.
The Bahrain sovereign wealth fund is the largest shareholder in McLaren, holding a 62.55% stake according to its website. Paul Walsh, CEO of McLaren Group, said, "Following the strategic investment in Racing that we arranged last year, this successful capital raising is a key factor in our overall financial strategy to support the group’s sustainable growth plans. With these strong institutions now in place, we are well-positioned to achieve our ambitions as a global luxury supercar company and among the elite in motorsport, with cars being the core driver of McLaren's profits."
McLaren secured £300 million from existing shareholders in March 2020 and completed a sale and leaseback transaction of £170 million at its headquarters in Woking last April. Additionally, the U.S.-based MSB Sports Capital investment group acquired a significant minority stake in McLaren Racing last December in a deal that brought in £185 million and alleviated the financial pressure caused by the COVID-19 pandemic. Revenues from cars in the first quarter of this year reached £170.5 million, representing a 145% increase compared to the same period in 2020, which was impacted by the pandemic.
