Red Bull welcome Carlyle as exclusive investment management partner

Deal marks first partnership between an F1 team and a major global private markets firm.
Red Bull Racing

Red Bull Racing have announced a multi-year strategic partnership with global investment firm Carlyle.

Contract:

  • Carlyle signs on as the team’s exclusive investment management partner
  • Deal marks first partnership between a Formula One team and a major global private markets firm

Context:

Thanks to the substantial commercial strides made under owner Liberty Media, Formula One has become fertile ground for private equity firms seeking to get involved with teams. Notably, Aston Martin have welcomed investment from Arctos Partners, while Alpine sold a 24 per cent stake to a consortium led by RedBird Capital Partners.

However, Carlyle stepping into the world of sponsorship is a first-of-its-kind deal in Formula One. The company has US$465 billion of assets under management and evidently views the global championship as a platform to reach prospective clients, with the sport’s state-of-the-art hospitality offering likely a key resource for engaging potential new customers.

Comment:

“We’re thrilled to welcome Carlyle to the team. Both of our organisations are built on world-class talent, bold thinking, and a drive to perform at the highest level,” said Laurent Mekies, chief executive and team principal of Red Bull Racing.

“As an iconic firm in global finance, Carlyle brings a long-term perspective with an expansive network, and we look forward to building a powerful partnership on and off the track. Formula One demands relentless focus and precision, and we see clear alignment with Carlyle’s approach to investing.”

Harvey Schwartz, chief executive of Carlyle, added: “Our industry is undergoing an extraordinary transformation, fuelled by greater access to private markets and growing interest from a new generation of investors. That same spirit of growth and inclusivity is reshaping Formula One, as Oracle Red Bull Racing leads the way in expanding the sport to new audiences globally.

“This partnership unites two high-performing teams driven by innovation and excellence. We’re excited to partner with one of the most illustrious brands in global sport to engage new audiences and create long-term value together.”

Coming next:

Carlyle branding will feature on the Red Bull cars of Max Verstappen and Yuki Tsunoda starting with the Azerbaijan Grand Prix at Baku City Circuit from 19th to 21st September. The firm’s logo will also appear on the drivers’ team kit, as well as around the Red Bull pit wall and garage.

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