It’s official, Alpine F1 sells 24% of its team. On Monday 26 June, Renault Group and Alpine announced that Otro Capital, RedBird Capital Partners and Maximum Effort Investments had acquired a 24% stake in Alpine Racing Ltd. The Group has thus confirmed the rumours that have been circulating for several weeks now.
The investor group, made up of Otro Capital and its partners RedBird Capital Partners and Maximum Effort Investments, has invested €200 million in Alpine Racing Ltd (i.e. a 24% stake).
Alpine Racing Ltd, ranked fourth in the 2022 World Championship, is the entity based in Enstone in the United Kingdom which represents all the activities of the Formula 1 team.
The Enstone based F1 team
Nestled in the picturesque village of Enstone in Oxfordshire, England, this team has been a consistent presence in the Formula 1 paddock for several decades. Throughout its storied history, the team has undergone various name changes due to ownership transitions, but it has consistently displayed its commitment to excellence on the racetrack.
The team’s origins can be traced back to the 1980s when it first entered Formula 1 under the banner of Toleman Motorsport. Over the years, it evolved into Benetton Formula, achieving remarkable success in the 1990s.
In 1994, the team achieved its first World Constructors’ Championship, a remarkable feat considering they were up against the formidable Williams team. Schumacher, with his unmatched skills behind the wheel, secured his first Drivers’ Championship, becoming the youngest champion in Formula 1 history at the time.
The following year, Benetton successfully defended its titles. Schumacher, displaying his mastery of the sport, secured his second consecutive Drivers’ Championship, while the team clinched another Constructors’ Championship.
In 2002, the team changed hands and became Renault F1 Team. Under the Renault banner, the team experienced further triumphs. Fernando Alonso, a prodigious talent, clinched the Drivers’ Championship in 2005 and 2006, propelling the team to the forefront of Formula 1. These victories solidified the team’s reputation as a force to be reckoned with, highlighting their ability to consistently develop competitive cars.
In recent years, the team has gone through additional changes, including being known as Lotus F1 Team, back to Renault and then adopting the name of their current owner, Alpine F1 Team, the sports car subsidiary of Renault.
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Duel of the GOATs 🐐⚔️🐐@alo_oficial makes his move on @LewisHamilton!#CanadianGP #F1 pic.twitter.com/J2EuGeU9lg
— Formula 1 (@F1) June 18, 2023
The sale of Alpine Renault
The transaction values Alpine Racing Ltd at approximately $900 million following an investment that will “accelerate Alpine’s growth strategy and sporting ambitions in Formula 1”.
The official line is that the Alpine F1 Team will benefit from the expertise and experience of the Investor Group in the sports industry, particularly in the areas of media, sponsorship, ticketing, hospitality, licensing and merchandising strategy to create new growth drivers and generate added value.
The Investor Group has extensive experience in building and developing businesses, including its work with the Dallas Cowboys, Fenway Sports Group, the NFL, Toulouse FC and Wrexham AFC. The Formula 1 team will also benefit from the Investor Group’s expertise in data and technology, key factors in marketing and sales performance.
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New board member
Following the transaction, Alec Scheiner, co-founding partner of Otro Capital, will join the Board of Alpine Racing Ltd.
Alpine Racing SAS, the entity that produces Formula 1 engines in Viry-Châtillon, France, is not part of the transaction and will remain wholly owned by Renault Group.
“Formula 1 and Alpine are strategic assets for the Renault Group,” said Luca de Meo, CEO of the Renault Group.
“Over the last two years, we have relaunched Alpine by capitalising on its iconic A110 sports coupé and by boosting the brand by entering Formula 1 where we want to fight for the title. This partnership will accelerate the development of Alpine F1 by diversifying revenue streams and increasing the value of the brand.”
The investment by Otro and RedBird also includes participation from the Huntsman family and Main Street Advisors.
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About Otro Capital…
Otro Capital is a private equity firm focused on the sports, media, gaming and entertainment industries, targeting under-monetized and often undervalued assets, and works in partnership with RedBird Capital.
The Otro team, led by Alec Scheiner, Brent Stehlik, Niraj Shah and Isaac Halyard, has been operating and investing in the sports ecosystem for twenty-five years. Otro’s targeted investments share three common features: i) differentiated access through a network of sports operators and owners, ii) valuable intellectual property, and iii) the ability to add value through its start-up experience and operational expertise.
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About RedBird Capital Partners
RedBird Capital Partners is a private equity firm focused on high-growth companies, providing strategic capital solutions to founders and entrepreneurs. Founded in 2014 by Gerry Cardinale, RedBird integrates sophisticated private investments with a mission to help build businesses in three core ecosystems – media and entertainment, sports and experiential consumption, and financial services. Throughout his 30-year career, Mr. Cardinale has partnered with founders and entrepreneurs to create some of the most iconic platforms in these industries. The company currently manages over $8.6 billion in assets on behalf of a group of leading international institutional investors and family offices.
RedBird’s portfolio consists of blue-chip intellectual properties in leagues, teams, media, entertainment and experiential consumption – including YES Network, Fenway Sports Group, AC Milan, Skydance Media, The Springhill Company and its newest streaming platform with the NFL, Everpass Media.
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About Maximum Effort Investments
Maximum Effort Investments is an investment fund focused on transformational value creation through storytelling. This “story first” approach is applied to four key investment sectors: real estate, sports, media and consumer goods. The management team draws on its diverse experience to find new ways to create value. Headed by Ryan Reynolds, the real estate development and private equity firm Harshal Dave Watford Group, along with George Dewey and James Toney.
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