GLP advises McLaren Group Limited on New £550m Equity Investment
McLaren Group Limited announces new £550m equity investment significantly strengthening capital structure and powering long-term, sustainable growth plans.
- New investors, funds managed by the Private Equity and Credit Groups of Ares Management Corporation and Public Investment Fund (PIF), have committed to invest a total of £400 million in McLaren Group Limited in the form of Preference Shares and equity Warrants, bringing capital as well as significant financial and strategic expertise to McLaren
- Existing shareholders, including Mumtalakat, alongside a limited number of new private investors, to invest a total of £150 million in McLaren Group Limited in the form of Convertible Preference Shares
- Reaffirms confidence in McLaren’s future sustainable growth potential following its recent strategic and financial actions
- The transaction also offers significant deleveraging opportunity for the business
This transaction follows a series of successful strategic financial initiatives undertaken by McLaren following impacts from the pandemic. In December 2020, MSP Sports Capital and other strategic investors acquired a significant minority shareholding in McLaren’s Racing division, with McLaren remaining the majority shareholder. This transaction allowed McLaren to retain a significant stake in its Formula 1 team while bringing in strategic partner capital to de-risk Racing and allow McLaren to focus on its leading Automotive business.
In April 2021, McLaren announced the successful sale and leaseback of its headquarters in Woking, in order to bring further growth capital into the business.
McLaren Group was supported in this transaction by Goldman Sachs International and HSBC as placement agents, Global Leisure Partners as financial advisor.
About McLaren Group
The McLaren Group is a British-based, globally renowned luxury automotive, motorsport and technology company.
Founded in 1963 by racer, engineer and entrepreneur Bruce McLaren, the group is formed of three companies; McLaren Applied, which works at the intersection of technology and data to deliver quantifiable performance advantage to organisations; McLaren Automotive, which hand-builds lightweight supercars; and a majority stake in McLaren Racing which competes in the Formula 1 World Championship and INDYCAR in the US. In December 2020, the McLaren Group announced new investment in McLaren Racing from strategic sports investor, MSP Sports Capital.
The McLaren Group has more than 3,000 employees and is globally headquartered at the iconic McLaren Technology Centre in Woking, Surrey, England.
With a reputation for innovation and technological excellence, McLaren is one of the UK’s largest independent companies.
About McLaren Racing
McLaren Racing was founded by New Zealand racing driver Bruce McLaren in 1963. The team entered its first Formula 1 race in 1966, since when McLaren has won 20 Formula 1 world championships, more than 180 Formula 1 grands prix, the Le Mans 24 Hours at its first attempt and the Indianapolis 500 three times.
McLaren Racing currently competes in Formula 1 globally and INDYCAR in the US. The team will contest the 2021 FIA Formula 1 World Championship with Lando Norris and Daniel Ricciardo, and the INDYCAR Series with drivers Pato O’Ward and Felix Rosenqvist, who will both be joined by Juan Pablo Montoya for the 2021 Indianapolis 500.
Chairman & Chief Executive Officer
Global Leisure Partners LLP
Tel: +44 (0) 20 7016 8065
Global Leisure Partners LLP ("GLP") is authorised and regulated in the UK by the Financial Conduct Authority. Global Leisure Partners LLC, a subsidiary of GLP, is a broker-dealer registered in the US with the Securities and Exchange Commission and is a FINRA member firm. Global Leisure Capital Partners LLC ("GLCP"), a wholly-owned subsidiary of GLP, is the principal investment arm of GLP and registered with the SEC as an Investment Adviser. All rights reserved. GLP specifically prohibits the redistribution of this material and accepts no liability whatsoever for the actions of third parties in this respect.