McLaren has received close to R11 billion (£550 million) from new investors, as the company looks to position itself for growth.
The supercar maker said that funds managed by Ares Management Corporation and the Public Investment Fund have commited to invest a total of £400 million in McLaren.
This will take the form of preference shares and equity warrants, and bringing capital.
Existing shareholders, including Mumtalakat, alongside a limited number of new private investors will also invest a total of £150 million in McLaren in the form of convertible preference shares.
McLaren said the investments reflect the “commitment and confidence in McLaren’s growth plans”.
The investments allow the company to pay back a loan it received from the National Bank of Bahrain in June 2020, and further deleverage itself.
“The transaction supports the company’s growth plans as a global luxury supercar and elite motorsport business, with automotive as McLaren’s core profit driver,” it said.
Formula 1 investment
McLaren said the latest investments follow recent strategic partnerships to inject more capital into the business.
This includes MSP Sports Capital and other investors acquiring a “significant minority shareholding” in McLaren’s racing division. The racing division includes the company’s Formula 1 team.
“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.”
Added to this was the company recently selling its headquarters in Woking, England and then leasing them back.
“Building on the short-term measures that we put in place last summer in response to the global pandemic, McLaren has taken a number of significant steps to put the company on a stable footing for the long-term,” said Paul Walsh, McLaren Group Executive Chairman.
“With these strong foundations now in place, we are well positioned to achieve our ambitions as a global luxury supercar and elite motorsport business, with automotive as McLaren’s core profit driver.”
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