French carmaker, Renault, announced that Otro Capital, RedBird Capital Partners, and Maximum Effort Investments are investing €200 million ($217.9 million) into Alpine Racing. This move aims to support Alpine’s growth plans and ambition in Formula 1. The funds are for a 24% equity stake, valuing Alpine Racing at approximately $900 million.
Alpine Racing’s Chief Executive, Luca de Meo, said this partnership diversifies revenue streams and increases the brand’s value. Renault aims to capitalize on the iconic A110 sports coupe and boost Alpine by entering the F1 championship, where it aims to become a top contender.
The investment comes after Alpine’s F1 team finished fourth in the 2022 F1 World Championship. Roland Vardan, managing partner at RedBird, believes this is an exciting development for Alpine Racing. They will work together to achieve their goal of a break-even operating margin and EUR2 billion in revenue in 2026. Their margin is expected to rise above 10% with revenue jumping to over EUR8 billion in 2030.
Renault considers Formula 1 and Alpine key strategic assets. The partnership aims to provide revenue diversification and brand value increase.