Waddell and Reed, the New York based fund manager recently made an investment in the Circuit of Americas. They are said to have plans to float the shares of Formula 1 on the stock exchange of Singapore. The Circuit located in Texas is the home of the renowned United States Grand Prix.
The Kansas based company, United States Grand Prix is privileged to be enlisted in the New York Stock Exchange with its current assets of $90 billion. The company has number of multinational firms under its investment wing. They are technology giant Apple, cold drinks manufacturer Pepsi and the casino company, Wynn t name a few.
In the year 2012, the parent company Circuit of the Americas LLC took a fund of $90 million of which Waddell and Reed provided $11.8 million, with the repayment scheduled on 2017 and 2018. In addition to this, it invested $1.6 billion for the 20.9 per cent share in the mother company of Formula 1, Delta Topco. This, as per the record is the highest investment and loan so far after only the gold bullion. The latter accounts for around 9 per cent of the Waddell and Reed’s total assets. The fund that it extended to the circuit makes them a shareholder of 7.6 per cent of its net assets.
With the investment in this sector, the company is expected to gain a strong foothold in the racing track. NBC the oldest broadcast network in the United States of America got the right to present the television coverage of the prestige Formula 1 this year. The sports division of the television network will cover the entire event. The Circuits of America is making further plans to organize this event in California and New Jersey. The New Jersey Grand Prix of America was scheduled to take place this year but due to some financial problems, it was postponed to the next year. The New Jersey Grand Prix was unable to make repayments and missed the dead lines, of the loans, which it has taken from its mother company Formula 1. UBS, the investment bank was able to collect an amount of $100 million to extend the financial support needed to go ahead to the next year.
The Texas based F1 is located in the state capital Austin, consisting of 3.4 mile track. The Circuit of the Americas is particularly customized to meet the requirements of Formula 1. The proprietor include fund manager, Bobby Epstein; billionaire investor of tequila company, Patron Spirits, John Paul deJoria and co-founder of advertising company Clear Channel, Billy Joe ‘Red’ McCombs. According to the latest report, the track in New Jersey took around $300 million to build with its maiden race scheduled to begin in the month of November this year. The loan that was given to the Circuit of the Americas is certainly not the only fund given to the racing track management. The loan has Leo Hindery Jr. the managing partner of private equity fund InterMedia Partners, as its guarantor.