China’s CMC Capital invests in Formula E

Financial details were not disclosed but CMC said the transaction was worth tens of millions of euros. The consortium includes SECA, a CMC portfolio company. 

Formula E was created in 2012 as a racing series for electric-powered single-seater racing cars sanctioned by International Automobile Federation (FIA), the governing body of motorsports. The races typically take place on the street circuits of major cities, such as Hong Kong, Paris, New York and Montreal.

The inaugural race was held in Beijing in 2014 and each of the first two seasons comprised 10 races. The third will feature 14. Ten teams compete in every race, with electric cars manufactured by the likes of Jaguar, Audi and BMW. Revenue from parent company Formula E Holdings rose about 40% year-on-year in 2015, with most of the money coming from race sponsorship and the auto manufacturers that control the racing teams.

Alejandro Agag, Formula E’s founder and CEO, said in a statement that China will become an important player in electric vehicle manufacturing, and the partnership with CMC will help the company further penetrate into Asia and Mainland China.

“Since its inauguration three years ago, Formula E has quickly evolved into a premium global sports IP under a first-class leadership, with remarkable progress in promoting sustainability, innovation, and market penetration of electric vehicles, as well as in media partnership, sponsorship and tourism,” said Ruigang Li, founding chairman of CMC. “CMC has been focusing on investing in premium global and local sports IPs, and we look forward to working together with Formula E both in China and globally.”

This is not Formula E's first partnership with a Chinese investor. Last month, sport-focused GP Yao Capital acquired a significant stake in the company for an undisclosed sum, and intended to make follow-on investments alongside Chinese co-investors.

CMC invested $100 million in Beijing-based SECA last January through its affiliate CMC Holdings, an investment platform designed to hold assets beyond a 10-year horizon. SECA is a sports marketing firm that provides sports entertainment consulting, talent management, content creation and public relations.

CMC Capital Partners was set up by Li, formerly president of Shanghai Media Group (SMG) in 2010. It invests in the media and entertainment, sports, internet and mobile and lifestyle sectors. In July of last year CMC reached a first close of $350 million on its second US dollar-denominated fund, which has a hard cap of $600 million. The GP is also expected to raise a separate renminbi vehicle.

• Tweet  
• Facebook  
• LinkedIn  
• Google plus  
• Save this article  
• Send to  

• Topics
• Greater China
• Media
• Expansion
• Consumer
• China
• China Media Capital
• Growth capital