(Bloomberg) -- Saudi Arabia's sovereign wealth fund has agreed to buy a minority stake in Italian supercar maker Horacio Pagani SpA, the latest indication the oil-rich kingdom is increasingly interested in carmaking.
The investment by the Public Investment Fund is part of a long-term strategic partnership with the closely held Italian company. The Pagani family will keep full control of the company, with the PIF joining Italian minority shareholders Nicola Volpi and Emilio Petrone, according to a statement.
PIF will acquire 30% of Horacio Pagani, according to a person familiar with the matter, who asked not to be named as the details are private.
Pagani, based near Modena in northern Italy, was founded by Italian-Argentine entrepreneur Horacio Pagani in 1992. The CEO and chairman called the PIF an “ideal partner” to further position “an iconic brand in the hypercars segment as well as to support its expansion strategy in the lifestyle segment.”
Bloomberg News reported in April that the PIF had hired advisers including Boston Consulting Group to explore establishing its own domestic electric-car maker. The fund has been active in the EV space going back several years, acquiring a small stake in Tesla Inc. in 2018 and later investing in Lucid Group Inc.
UBS Investment Bank acted as Pagani's financial adviser in a team led by the country head for Italy Riccardo Mulone. Withers Studio Legale acted as legal adviser to the selling shareholders. Rothschild & Co and Freshfields Bruckhaus Deringer acted as PIF's financial and legal advisers, respectively.
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