Why is Aston Martin investor Arctos Partners beneficial for F1?

The private equity platform owns stakes in iconic sports teams across the world, from the NBA’s Golden State Warriors all the way to Ligue 1’s Paris Saint-Germain.

F1 is without a doubt one of the most exciting sports to watch on the planet, and it’s quickly made an impact in sports betting. From outright race winners to placing a bet on the whole team to win the race using a prop bet , the rise of legal wagers on sports, particularly in the US, has helped make the sport even more popular.

Speaking of America, this major purchase on the part of Arctos is also simply part of a larger trend of US investment in the sport. Recently, a high-profile group including Ryan Reynolds, Rob McElhenney, and MIchael B. Jordan purchased a 24% stake in Alpine, while Williams and McLaren have also received recent funding from American investors.

This surge in funding from the United States, particularly from private equity groups like Arctos, shows that teams like Aston Martin are seen as a good business investment with serious potential for long-term growth. The question is, why now?

One key point that can’t be overlooked is F1’s recent introduction of the franchise model, which offers more financial stability to mid and lower table teams, making investment in racing outfits like Aston Martin a more enticing proposition for many, including Arctos Partners.

But, for managing partner David “Doc” O’Connor, the impetus for Arctos investment in Formula One was actually a popular Netflix show: "The catalysing event was Drive to Survive. It created a window of understanding into this whole ecosystem. And because of that window, it was fascinating to us.”

For those of you not in the know, Drive to Survive is a Netflix documentary series that started in 2019 covering the sport. For many in the US, it was the first time they got a taste of Formula One, leading to a significant boost in popularity in America.

And the numbers back that up. According to a 2023 report from Morning Consult over 22% of U.S. adults who are Formula One fans said Drive to Survive was a major reason they started watching the sport.

Looking at it from the other side, Arctos also has a lot to offer Aston Martin, particularly in terms of commercial knowledge. With holdings in a number of major sports and leagues around the globe, the company has tons of data and knowledge from across the sporting world that can be applied to Formula One.

Something that Aston Martin managing director Jefferson Slack certainly agrees with: “Obviously, there's investment, but there's also what they bring to the party. They work with some of the best franchises in the world. And as an American I know how good especially US franchises are at building sports businesses.

For F1 as a whole, Arctos investment is the continuation of the sport's positive inroads into the wealthy American market, and is a great sign of its continued growth and success during an era of expansion for the beloved racing establishment.