F1 News: Bahrain's Investment Fund Set To Be The New Owner Of Formula One Team

McLaren will now be owned by the Mumtalakat.

The McLaren group is poised to come under the ownership of Bahrain's sovereign wealth fund Mumtalakat, marking a strategic move as part of its long-term initiative to form a partnership with a global industry leader, marking a pivotal moment in the company's trajectory.

The deal is said to fructify shortly with the remaining minority shareholders of McLaren to convert their equity into contracts, which will "have the economic rights to benefit from a future 'liquidity event' such as an initial public offering of McLaren but would not be classed as shares," as reported by Sky Sports. 

Approximately 20 percent of McLaren's equity would be transformed into the new contracts, resulting in the state of Bahrain becoming the sole shareholder of the Formula 1 team-owning group.

Mumtalakat, reported as currently holding approximately 60 percent of the McLaren Group, announced on Tuesday that the Group's shareholders had approved a comprehensive recapitalization. The upcoming agreement to be signed this week reinforces Mumtalakat's ongoing confidence and leadership in steering McLaren's turnaround, as indicated by an insider.

McLaren Racing, a subsidiary of the business, including Formula 1, IndyCar, Extreme E, and Formula E operations, has external shareholders. This development could potentially open avenues for a technology partnership with an original equipment manufacturer (OEM) in the automotive sector, aligning with McLaren's shift toward becoming a hybrid and electric vehicle company.

In the earlier part of 2023, Mumtalakat acquired McLaren shareholdings from Saudi Arabia's sovereign wealth fund and Ares Management, a significant financial investor based in the United States. More recently, reports indicate that the Bahrain-based fund infused an additional £80 million into McLaren.

Paul Walsh, McLaren Group Executive Chairman, said in a statement on the official website:

“Completing the recapitalisation is a significant step in the ongoing transformation of the Group and provides a solid platform from which to grow our product offering and brand presence.”

H.E. Shaikh Abdulla bin Khalifa Al Khalifa- the majority shareholder of the Group and Chief Executive Officer of Bahrain Mumtalakat Holding Company, said:

"Today's announcement is testament to the diligent steps that have been taken in what is a comprehensive and long-term plan with our partners to deliver an optimal governance structure as the Group continues to design and deliver the world’s most innovative and exhilarating supercars.”