F1 Rumor: Aston Martin F1 Valuation To Hit £1.5 Billion After Sale Of Stake

Saajan Jogia | Sep 7, 2024

May 4, 2024; Miami Gardens, Florida, USA; Aston Martin driver Lance Stroll (18) during F1 qualifying for Miami Grand Prix at Miami International Autodrome. Mandatory Credit: Peter Casey-Imagn Images / Peter Casey-Imagn Images

The Aston Martin Formula One team is poised to establish a new valuation benchmark of £1.5 billion to £2 billion with a significant stake sale to HPS Investment Partners, a US-based firm, and Accel, a leading Silicon Valley venture capital firm. The big move arrives ahead of Adrian Newey's speculated signing with the team, with an announcement to be made on September 10.

Sky News reported that the two major global investors are purchasing shares in the Formula 1 team, a move facilitated by Aston Martin's billionaire majority shareholder, Lawrence Stroll, who has committed significant resources to secure the brand's long-term profitability.

Accel is a prominent venture capital firm known for its early backing of companies like Facebook, while HPS is a global investment firm managing approximately $115 billion (£87.6 billion) in assets. HPS is anticipated to surpass a $10 billion valuation upon its New York IPO and has reportedly agreed to refinance the debt linked to Aston Martin F1's technology campus at Silverstone.

A source familiar with Aston Martin F1's shareholders stated that The Raine Group, the merchant bank involved in the sale of Chelsea FC and a stake in Manchester United FC to Sir Jim Ratcliffe, backed the deal. The source also noted that this transaction would see the two investors obtain a 20% to 25% stake in AMR GP Holdings Limited, the team's parent company.

Stroll sold a minority stake in the F1 team to sports-focused private equity firm Arctos Partners last year, but he still retains a majority ownership in the London-listed company. Speaking of stakes, recent speculation about Red Bull's chief technical officer Newey joining Aston Martin in 2025 gained momentum following reports of Aston Martin offering him a £20 million-per-year deal, along with a potential stake in the company.

The most coveted aero guru on the F1 grid, responsible for Red Bull's dominance in the ground effect era since 2022, was reportedly in talks with several teams that were eager to receive his services. However, Aston Martin has been successful in signing him. According to a report by The Times, Newey will become a shareholder at Aston Martin as part of a multimillion-pound deal. The statement read:

"Design guru Adrian Newey is set to become an Aston Martin shareholder as part of a lucrative multimillion-pound deal to join the Formula 1 team."

Aston Martin seems to have put forth a significant offer to attract Newey, especially after team owner Lawrence Stroll revealed he had been in talks with him for years and emphasized his eagerness to bring him on board. He told Bloomberg:

"Adrian and I have been talking not only for months but actually for years.

"Adrian is clearly the most talented and gifted individual in F1 based on his track record and history.

"So I'd be very excited for Adrian to join our team, as I think every other F1 team on the grid would feel exactly the same."

When asked if Newey would join Aston Martin, Stroll answered:

"I certainly hope so."