Porsche Exits Bugatti Rimac Joint Venture, Sells 45% Stake to US-Led Consortium

Porsche AG has agreed to sell its 45% stake in supercar brand Bugatti Rimac, fully exiting the joint venture that houses the iconic brand. Porsche and Croatian sports-car maker Rimac Group established Bugatti Rimac in 2021, with Rimac holding a 55% majority stake and Porsche taking the remaining 45%. It will sell its stake to a consortium led by New York-based venture capital firm HOF Capital, with BlueFive Capital as its largest investor. The deal comes as the automotive industry grapples with mounting pressure to consolidate amid slowing growth, rising costs and intensifying margin pressure from tariffs and geopolitical disruption. Automotive and mobility deal value rebounded last year, reaching more than $35 billion by third quarter, according to Bain & Company. Under the terms of the deal, Porsche will also divest its 20.6% stake in Rimac Group, marking a complete exit from its investment in the Croatian electric hypercar maker. Following the transaction's completion, Rimac Group will take full operational control of Bugatti Rimac and form a strategic partnership with BlueFive and HOF Capital to support the brand's growth. Shares in Frankfurt-listed Porsche dropped 1.6% in early trading on Friday. HOF Capital was co-founded by a scion of Egypt's billionaire Sawiris family. BlueFive Capital is a private equity firm led by Hazem Ben-Gacem, a former executive at alternative investment firm Investcorp. Financial terms of the transaction were not disclosed. "As an early-stage investor of Rimac Group, Porsche made a significant contribution to developing Rimac Technology into an established Tier-1 automotive technology company," said Michael Leiters, CEO of Porsche AG. "With the sale of our stake, we are focusing Porsche on the core business." "With the strong foundations [Porsche's] support has provided, we now have a structure that allows us to execute even faster on our long-term vision," said Mate Rimac, CEO of Bugatti Rimac. Rimac founder Mate Rimac had expressed interests to buy Porsche's stake last year, making a preliminary offer that valued the joint venture at slightly over €1 billion ($1.1 billion), Bloomberg reported, citing people familiar with the matter. "BlueFive Capital approaches this opportunity as more than simply a financial transaction, and we look forward to working alongside the entire Bugatti Rimac team to honor that legacy for generations to come," said Hazem Ben-Gacem, Founder and Chief Executive of BlueFive Capital.