McLaren Group was experiencing financial strains for the last few years. In the first nine months of 2023, the group reported a loss of $352.5 million. The pandemic also took a toll as vehicle production stopped and racing activities were canceled globally. Moreover, the automotive group witnessed a restructuring, with layoffs of 25% of its workforce taking place in May 2020. 

To top it all off, McLaren Group was struck by supply chain disruptions, specifically a shortage of computer chips.

In December 2023, the group shared that its shareholders had approved a full recapitalization. In January 2024, they had confirmed $37.8 million in additional funding as part of the process.

Now, Mumtalakat, Bahrain’s sovereign wealth fund, has fully owned the British supercar company. 

The Bahraini fund was already McLaren’s biggest shareholder and has been an investor in the group since 2007 when it bought a 30% stake from founding shareholders Ron Dennis and Mansour Ojjeh.

McLaren Group owns McLaren Automotive, the sports car manufacturer, and is a majority shareholder in McLaren Racing, the company’s Formula 1 team.

The deal further constitutes that Mumtalakat also owns a majority stake in the F1 team.

“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 while continuing to explore potential technical partnerships with industry partners,” said Paul Walsh, McLaren Group’s Executive Chairman.

Meanwhile, Mumtalakat’s CEO Sheikh Abdulla bin Khalifa Al Khalifa said,

“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 Innovation By Design Summit is in Doha on April 24. Attendance at the summit is by invitation only. Delegates can register here to receive their exclusive invite.