SILVERSTONE, U.K.--(BUSINESS WIRE)--The Forest Road Company, a Los Angeles-based investment firm, through funds managed by Forest Road Asset Management, has acquired 100% of the ERT Formula E team. The team is rebranding as Kiro Race Co and is thrilled to enter Season 11 of the ABB FIA Formula E World Championship (the “Championship”) with a change in ownership and vision, marking a new chapter in its history.
A New Era Under Forest Road
Forest Road brings a wealth of experience investing, operating and advising in industry sectors experiencing growth and transformation. As opportunistic investors with a proven track record in both media and renewable energy, Forest Road is well-positioned to drive significant value for the team and Formula E.
With the backing of Forest Road, as well as David Kaplan and Bennett Rosenthal, Co-Founders of Ares Management, Kiro Race Co is positioned for the long term and will be focused on driving sustained growth. David Kaplan will act as Managing Partner of the team, capitalizing on his decades of investing and operating experience to achieve world-class performance. Together, this new ownership group brings a unique perspective to Formula E and is eager to leverage its extensive network to attract new partners and increase awareness of electric racing in the United States and globally.
Partnership with Porsche Motorsport Strengthens Performance
The team is also announcing a technical partnership with Porsche Motorsport. This collaboration will see Kiro Race Co equipped with Porsche's twice world championship-winning technology. The Porsche 99X Electric of GEN3 becomes the Porsche 99X Electric WCG3, featuring upgrades to common components to comply with new GEN3EVO regulations. This partnership ensures access to cutting-edge performance and will be instrumental in Kiro’s ambitions to move up the grid.
Strong Endorsement for Formula E's Growth Trajectory
Forest Road entering Formula E as a team owner, along with Liberty Global’s recent acquisition to become the controlling shareholder of Formula E, reinforces the series’ immense growth potential. Already the world’s fastest growing motorsport, the Championship continues to experience remarkable momentum – global TV viewership jumped 35% in Season 10 alone, and Season 11 will boast the largest calendar to date, featuring 17 races across the globe.
Quotes from Key Stakeholders:
- Alex Hui, Team Principal of Kiro Race Co: "This is truly a historic moment for our team. Bringing a US-based asset management group like Forest Road into Formula E is a testament to the series' growth and our team's potential. Their investment allows us to build with confidence for the future and compete at the highest level. We are excited to work with them and Porsche Motorsport to achieve our goals."
- Jeremy Tarica, Managing Director of Forest Road: "We are thrilled to enter The Formula E World Championship and start our journey as Kiro Race Co. The Championship is at a pivotal moment of maturation from a macro and micro perspective. As the world embarks on a massive transition to electric vehicles, the race product has achieved a significant breakthrough in technology with the fastest accelerating single-seater cars. We are committed to helping Kiro become a leading force in the industry."
- Jeff Dodds, CEO of Formula E: "This is a fantastic development for Formula E and for Kiro Race Co. It marks the entry of a sophisticated investor group with a strong track record in the sports and entertainment industry. This investment in the team and its ambitious new owners will help us continue to grow the Championship and make it more attractive to fans and partners around the world."
- Mike Fries, CEO of Liberty Global: “This investment further validates our decision to acquire a controlling interest in Formula E at this exciting moment for the championship. We are confident that Kiro Race Co, under the leadership of Forest Road, will further strengthen the series and help it to remain the fastest growing motorsport in the world.”
ACF Investment Bank served as financial advisor to Forest Road.
Skadden, Arps, Slate, Meagher and Flom LLP served as legal counsel to Forest Road.
About Kiro Race Co (formerly ERT Formula E Team)
Kiro Race Co is an independent racing team committed to pushing the boundaries of electric vehicle technology and competition. Our name, Kiro, which means “bright light,” embodies a vision for a future where electric vehicles are superior and, therefore, the norm. This commitment is reflected not only in our vibrant livery but also in our unwavering dedication to accelerating and highlighting the adoption of electric motorsport. As the world transitions to a more sustainable future, Kiro Race Co is at the forefront of driving innovation and progress.
