Illustration by Cora Veltman, photo by Dan Istitene – Formula 1/Formula 1 via Getty Images
Arctos Partners invests in Aston Martin Aramco Cognizant Formula 1 team. Financial details of the deal were not disclosed, but Arctos has invested more than £1 billion ($1.24 million) in the team, according to a person familiar with the matter. This is Arctos’ first investment in Formula 1.
The investment comes during an unprecedented period of growth and popularity for Formula 1 in the United States, ahead of the first Las Vegas Grand Prix.
“Arctos sees the potential and value of this project as we continue to build a world-class Formula 1 team,” Laurence Stroll, executive chairman of Aston Martin, said in a statement. “They share our vision for our ultra-luxury brand and are extremely passionate about the sport and its prospects. We are investing in infrastructure, people and processes, and this is the perfect time to add strength in depth with Arctos’ operational and strategic expertise.”
Owned and managed by Ian Charles and Doc O’Connor, Dallas-based Arctos primarily purchases passive minority interests in professional sports teams in North America and Europe, including the NHL’s New Jersey Devils, the NBA’s Philadelphia 76ers and Utah Jazz, and the NWSL’s Utah Royals . It also has stakes in sports-related businesses such as SeatGeek and sports technology venture capital fund Sapphire Sport. Arctos had $6.6 billion in sports assets at the start of 2023.
“This investment is consistent with our firm’s strategy to focus on supporting leading sports brands in North America and Europe,” Arctos managing partner Doc O’Connor said in a statement. “We will provide extensive resources to enhance the team’s reach and brand, including industry insights originating from our proprietary quantitative research and data science platform.”
Arctos will bring its experience and deep sporting connections to the Silverstone, England-based team, which has eight podium finishes this season. The team is also completing its AMR Technology Campus, which will have a new wind tunnel and additional engineering facilities.
Arctos isn’t the only sports-focused firm investing in Formula 1 this year. In June, RedBird, Otro Capital and actor Ryan Reynolds led a group that bought a 24 percent stake in Alpine for $218 million in a deal that valued Alpine just north of $900 million.
Aston Martin first competed in Formula 1 in 1959. Stroll led a consortium to buy the Force India F1 team for $117 million and rebranded the Racing Point team in 2019. Following his $235 million investment in the Aston Martin brand, he rebranded the team again, this time as Aston Martin, and returned to the track under his leadership in 2021.
The team is valued at $1.14 billion according to of Sportico final grades.
Arctos’ investment comes at a pivotal time for the sport, which has implemented new cost containment measures that have significantly changed the cash flow profile of F1 teams. Many F1 teams previously lost tens of millions of dollars per season.
“We’ve had about a 10x increase in revenue over three years from the partnership, which of course helps drive the valuation when you get into the revenue from multiple deals,” said Jefferson Slack, Aston Martin’s managing director of sales and marketing at video call. “I think this is an example of where Formula 1 thrives.
Raine Group serves as exclusive financial advisor to Aston Martin.
(This story has been updated in the first paragraph with the investment appraisal and in the second to last paragraph with a quote from Jefferson Slack.)