Since the midway point of the 2023 season, McLaren has proved it’s still one of the top teams in F1. The McLaren men, Lando Norris and Oscar Piastri were in points and podiums right after the midseason upgrades, which gave the team a much-needed boost. Apart from the on-track boost, the performances had a positive impact in the eyes of the shareholders as well. So much so that one of McLaren’s shareholders has bought the entire company out, ending all their financial uncertainty.

Covid-19 affected everyone in the world, including McLaren. They took out a $163 million loan with the National Bank of Bahrain and sold their stake in the team whilst arranging a leaseback deal for its renowned Technology Center. The Woking-based outfit also laid off 1000 employees to keep the company afloat. This was all a result of McLaren’s poor finances but no more. The Mumtalakat Holding Company, a Bahrain sovereign wealth fund, has taken full ownership of McLaren after being associated with the team since 2007, so let’s get to know them.

Who is Mumtalakat Holding Company–the Bahrain sovereign wealth fund that bought out McLaren?

Mumtalakat Holding Company is the sovereign wealth fund of the Kingdom of Bahrain. The fund that is fully owned by the government was established by the Royal Decree in 2006. As of October 2023, the fund has a whopping $18.3 billion worth of assets under their management according to the Sovereign Wealth Fund Institute.

Mumtalakat became part of the McLaren F1 team in 2007 after a purchase of a 30% stake from former chairman Ron Dennis and the late French Saudi-born entrepreneur Mansour Ojjeh. This was the beginning of their partnership as they added a further 30% stake in the company. However, in December 2023, McLaren shareholders unanimously approved a full recapitalization of the business. The idea behind the recapitalization was to simplify and streamline the governance process.

Trending

Liam Lawson’s Surprise Contract Clause Threatens Daniel Ricciardo’s RB Seat

April 24, 2024 11:15 AM EDT

F1 Rumor: Adrian Newey to Join Ferrari, Leaving Red Bull Amid Christian Horner-Helmut Marko Fiasco

April 25, 2024 05:55 PM EDT

“[Charles] Leclerc Doesn’t Care About Ferrari”: F1 Insider’s Brutal Blow to Fred Vasseur & Co. Has Racing Community Lashing Out

April 24, 2024 05:00 PM EDT

What Is Azzurro La Plata and Azzurro Dino? Significance of Ferrari’s Historic Change to a Blue Livery for Miami GP

April 24, 2024 04:52 PM EDT

F1 Rumor: Oliver Bearman to Join Haas as Nico Hulkenberg Leaves Seat Empty to Join Kick Sauber Team

April 26, 2024 10:45 AM EDT

Get instantly notified of the hottest F1 stories via Google! Click on Follow Us and Tap the Blue Star.

Follow Us

Now, ahead of the Australian Grand Prix, the British team announced the transfer of ownership to the Mumtalakat Holding Company “following the conversion of all preference shares into ordinary shares” which translates to the Bahrain sovereign fund taking full ownership of the share capital i.e. 100% stake in the company.

As quoted by Autosport, Paul Walsh, McLaren Group executive chairman, said: “We are delighted at Mumtalakat’s continued commitment to McLaren through this deal, which strengthens our ownership and governance structure. This will further enable us to focus on delivering our long-term business plan, including investment in new products and technologies, whilst continuing to explore potential technical partnerships with industry partners.”

This transfer of ownership will at least put McLaren’s persistent financial troubles to bed. But will we see drastic changes in the team and the team name?

Will McLaren see drastic changes internally after Mumtalakat’s takeover?

Many would expect the team Woking outfit to now experience serious changes under the new ownership. Perhaps we will see another elaborate name change on the grid, adding to the growing trend. Well, for now, there is no such news and we can safely assume a name like McLaren will not be disturbed because of its long association with the sport.

On the other hand, CEO Zak Brown will also stick around till at least 2030 as he announced his contract renewal on social media. Additionally, the driver lineup is going to remain unchanged till at least 2026, with valid contracts binding both Piastri and Norris, a team that Brown considered to be the best on the grid. So what changes can we expect? Let’s hear it from the new owner’s mouth.

Mumtalakat CEO Shaikh Abdulla bin Khalifa Al Khalifa said, “Today’s announcement crystallizes the next phase of the Company’s trajectory of growing its leadership position in the luxury supercar and motorsports industries.”

He added, “This reorganization and new simplified structure positions McLaren for success and opens up strategic avenues, which include exploring new partnerships to enhance the company’s growth over the coming years. The completion of this process is also a significant milestone that reflects our support for McLaren’s continued innovation and long-term commitment to excellence.”

The team will now focus on putting their money on track in all aspects, i.e. F1, Formula E, IndyCar, and Extreme E as well as in the development of the hybrid supercar Artura. The Woking outfit can now freely use their newfound financial freedom to exert dominance and close gaps wherever needed in the racing world. We’re excited to see how this new development affects the McLaren F1 team.

“Not All Areas Have Been Completed”: McLaren Face Uphill Task as Andrea Stella Gives Honest MCL38 Update