Fast company
By admin • Jun 30th, 2008When MerchantBridge’s Samir A. Arab test-drove a Spyker car a few years ago, he was impressed. “How much?” he asked. “$250,000,” came the reply.
When MerchantBridge’s Samir A. Arab test-drove a Spyker car a few years ago, he was impressed. “How much?” he asked. “$250,000,” came the reply. “No, no. For the company …”
So in true Victor Kaim-style, MerchantBridge, a London-based private equity firm with offices and interests across the Middle East, found itself with a stake in an up-and-coming supercar manufacturer and with a seat on the company’s board.
Spyker had bigger ideas than just building small runs of super-exclusive sports cars. In 2006, it bought Midland F1, the struggling motor racing team, for $106.6 million. Midland itself had a decent enough pedigree: it traces its roots back to former Formula One driver Eddie Jordan’s Jordan Grand Prix, which launched in 1991 and, amid financial struggles, was sold to Midland in early 2005. With a 12-team limit in Formula One coming into play from next year, and all these slots likely to be filled, a Formula One team could make for a very interesting – and potentially lucrative – investment above and beyond the obvious publicity factor.
