CPP Investments sells stake to Formula 1 owner

CPP finalizes the sale of its Dorna Sports stake, expecting $1.9bn in proceeds

CPP Investments sells stake to Formula 1 owner

Canada Pension Plan Investment Board (CPP Investments) has entered into an agreement through its subsidiary, CPP Investment Board Europe Sarl, to sell its entire stake in Dorna Sports to Liberty Media, the owner of Formula 1. 

Liberty Media is collaborating with Bridgepoint on this transaction.    

This transaction signifies the full divestiture of CPP Investments' stake in Dorna, leading to expected net proceeds of approximately $1.9bn. The proceeds from the sale consist of about 75 percent in cash and 25 percent in Series C Liberty Formula One tracking stock.   

Reflecting on the investment journey that began in 2013, Hafiz Lalani, managing director and global head of Direct Private Equity at CPP Investments, remarked, “Since our first investment in Dorna in 2013, the Company has expanded the scale, scope, and fanbase of motorcycle racing globally. Our partnership with the Dorna management team and Bridgepoint over more than a decade has delivered excellent returns for the CPP fund.”  

Lalani emphasized the cohesive ownership approach in fostering the global growth of the business and steering it through the tumultuous period of the global pandemic. He expressed confidence in the business's future growth under Liberty Media's ownership.   

CPP Investments' Direct Private Equity (DPE) strategy targets assets and sub-sectors where the organization has a competitive edge, including a strong track record, superior insights, and strategic partnerships, all aimed at generating attractive risk-adjusted returns.  

As of March 31, CPP Investments' total Private Equity assets were reported at $146bn, representing 26 percent of its total assets.   

The deal, already signed, awaits the fulfillment of customary closing conditions and regulatory approvals. The completion of this significant transaction is anticipated by the end of 2024. 

Dorna Sports is known for managing, marketing, and holding the global rights to the MotoGP and WSBK Championships.