Renault Group finds group of investors to take a good chunk of equity stake in Alpine F1 team to support its ambitions going forward.
Ahead of the start of the F1 2023 season, the Renault Group did voice their intention to find new investment for its racing division. Even with the budget cap in place, the French manufacturer wished to rope in finances from outside to push the team forward.
Their search has ended after inking a deal with a group of investors. The primary company is Otro Capital which in turn has called upon its partners RedBird Capital Partners and Maximum Effort Investments, to invest in Alpine Racing Ltd.
Together they have taken up 24% equity stake which amounts to about €200 million. And this transaction has increased the value of Alpine Racing to around $900 million. The French manufacturer reckons the combination of the three will help them.
There is some Hollywood influence with the involvement of Maximum Effort Investments which is led by Ryan Reynolds. His co-investors include Michael B Jordan and Wrexham AFC Co-chairman Rob McElhenney, as they expand on after their recent success.
As a result of this investment, Alec Scheiner – who is the co-founder and partner of Otro Capital – will join the Alpine Racing board of directors. The investor group already has a chain of investment, whether it is football and or NFL.
This investment is only limited to Renault’s activities in Enstone, which is the home of the Alpine F1 team. The engine manufacturing side in Viry-Chatillon remains solely under the Renault Group and they are not part of the transaction.
“Formula 1 and Alpine are strategic assets for Renault Group. Over the past two years, we have re-ignited Alpine, capitalizing on its iconic A110 sports coupé, boosting it by entering Formula 1, where it aims to become a championship contender,” said Renault boss Luca de Meo. “This partnership will accelerate Alpine F1 development by diversifying revenue drivers and increasing brand value.”
Meanwhile, Alpine chief Lauren Rossi, noted: “This association is an important step to enhance our performance at all levels. First, Otro Capital, RedBird Capital Partners and Maximum Effort Investments, as international players with strong track record in the sports industry, will bring their recognized expertise to boost our media and marketing strategy, essential to support our sporting performance over the long term.
“Second, the incremental revenue generated will in turn be reinvested in the team, in order to further accelerate our Mountain Climber plan, aimed at catching up with top teams in terms of state-of-the-art facilities and equipment.”
Moving on to the newcomers, Otro’s Scheiner, stated: “We are thrilled to have the opportunity to invest in Alpine F1. We believe in the management of the company, the value of the brand as well as the long-term trajectory of the sport. We believe that, along with our partners RedBird and Maximum Effort Investments, we can add value to Alpine’s business operations and brand building, especially in North America.”
And finally, MEI’s James Toney added: “Maximum Effort Investments focuses on unlocking value through the power of storytelling, and we believe there is tremendous untapped potential in Alpine Racing. We are eager to help shine a light on this incredible team. We’re thankful to our partners at Otro Capital and RedBird Capital Partners and look forward to diving in with them, as well as our co-investors Michael B. Jordan and Rob McElhenney.”
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