16/12/2009
NEWS STORY
Genii Capital, the Luxembourg investment firm specialising in new technologies, brand management and motorsport, announced today that it is to acquire a large stake in Renault F1 Team Ltd.
"We are delighted to have been selected as Renault's strategic partner for the Renault F1 Team," said Eric Lux, CEO of Genii Capital. "Our long-term vision for this challenging venture aims to return Renault to the forefront of Formula 1. Together with Renault, we intend to run the team with the same values as any of our other investments, prioritising ambitious performance targets without neglecting cost efficiency. We strongly believe that on-track performance can be compatible with business performance, and we will use all our entrepreneurial spirit and commercial know-how to achieve this goal."
Genii Capital will work in close strategic partnership with Renault to give the team the stability and the resources it needs to succeed in the years ahead. This innovative partnership means that the team will continue to race under the Renault name, powered by Renault engines.
The agreement between Genii Capital and Renault concerns the team's facilities at Enstone, UK which played a major part in winning two consecutive drivers' and constructors' world championships in 2005 and 2006. The Enstone site includes state-of-the-art aerodynamic facilities, such as the recent Computational Fluid Dynamics centre, and is home to one of the sport's leading engineering teams with recent title-winning pedigree.
Genii Capital will also explore opportunities for synergies between companies in its investment portfolio and the Renault F1 Team. One example is Gravity Sport Management, a career-management company for young drivers that will leverage the experience of the Renault Driver Development programme. Furthermore, Genii Capital hopes to play an active role in the overall strategic development of Formula 1 through its knowledge of, and access to, new technologies.
"This is a period of opportunity for Formula 1, not a period of uncertainty," commented Gerard Lopez, managing partner at Mangrove Capital Partners and board member of Genii Capital. "Formula 1 has an extraordinary level of global awareness that can be used to develop new business-to-business opportunities in traditional and developing markets, and there are exciting new revenue streams to be explored."