BlueFive Capital, a global investment platform based in Abu Dhabi, has announced that a consortium led by New York-based investment group HOF Capital has entered into a deal with luxury auto brand Porsche to acquire its entire stake in Bugatti Rimac, a joint venture set up in 2021 to serve as home to the iconic Bugatti brand.

The consortium includes BlueFive Capital as its largest investor, as well as a group of institutional investors across the US and EU.

As part of the transaction announced yesterday (April 24), Porsche will fully divest its equity stakes in Bugatti Rimac and Rimac Group to a HOF Capital-led consortium. 

In this joint venture, Porsche holds a minority stake of 45%, Rimac Group owns 55%. Porsche also holds a 20.6% stake in Rimac Group.

Following the deal, Rimac Group is set to take control of Bugatti Rimac and form a strategic partnership with BlueFive Capital and HOF Capital to support its continued growth.

Hazem Ben-Gacem, Founder and CEO of BlueFive Capital said: "Bugatti is a monument to automotive obsession, born from Ettore Bugatti’s pursuit of beauty and performance combined. BlueFive Capital approaches this opportunity as more than simply a financial transaction, and we look forward to working alongside the entire Bugatti Rimac team to honour that legacy for generations to come."

Dr Michael Leiters, CEO of Porsche AG, said: "In setting up the joint venture Bugatti Rimac together with Rimac Group, we successfully laid the foundation for Bugatti’s future. And as an early-stage investor of Rimac Group, Porsche made a significant contribution to developing Rimac Technology into an established Tier-1 automotive technology company. Now, with the sale of our stake, we are focusing Porsche on the core business. We would like to thank Mate Rimac and his team for the constructive and trusting cooperation over the past years."

Bugatti Rimac CEO Mate Rimac said: "Porsche has been a crucial partner, and we are deeply grateful for their role in establishing Bugatti Rimac. With the strong foundations their support has provided, we now have a structure that allows us to execute even faster on our long-term vision. We look forward to our collaboration with our new partners."

BlueFive Capital is a global investment platform that today has $15 billion in assets under management (AUM) and targets opportunities in high-potential economies with the goal of transforming traditional financial models and fostering sustainable growth. 

Incorporated in Abu Dhabi Global Market and with offices in London, Manama, Abu Dhabi, Dubai, Muscat and Beijing, the firm offers private equity, real estate, infrastructure and financial products to private wealth, institutional and retail clients.-TradeArabia News Service