Deals

Big Formula One Bet Vaults a Buyout Firm to the Top

  • London-based buyout firm could sell stake within weeks
  • Suitors may include Sky and the Qatar Investment Authority

Why CVC Plans to Sell Its Formula 1 Stake

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It was considered one of the riskiest private equity investments ever.

CVC Capital Partners, a then-mid-sized London-based firm, paid a steep $2 billion in 2006 to buy Formula One, the world’s dominant auto racing circuit. The timing wasn’t great. A number of racing teams were threatening to bolt in a pay dispute. The deal’s success also hinged on F1 founder Bernie Ecclestone, the famously domineering boss who would later sidestep bribery charges.