German luxury automaker Porsche has completed the sale of its ownership interests in high-end car manufacturers Bugatti and Rimac to an investment consortium headed by a United States-based fund, according to a Friday announcement from one of the purchasing investors.
The transaction involves Porsche selling off a 45% ownership share in Bugatti Rimac, the partnership that houses the legendary Italian brand, along with a 20.6% interest in Rimac Group, according to BlueFive Capital, which participated in the acquisition.
Although BlueFive Capital chose not to reveal the transaction’s dollar amount, Reuters previously reported that Croatia-based Rimac carried a valuation exceeding 2 billion euros, equivalent to approximately $2.34 billion.
“In setting up the joint venture Bugatti Rimac together with Rimac Group, we successfully laid the foundation for Bugatti’s future,” Porsche CEO Michael Leiters stated in the announcement. “Now, with the sale of our stake, we are focusing Porsche on the core business.”
The divestiture comes as Porsche faces mounting financial pressures and the need to reduce expenses while freeing up investment capital.
Porsche AG established the partnership with Rimac during 2021, when the German manufacturer’s former chief executive Oliver Blume promoted the arrangement as combining Bugatti’s hypercar manufacturing excellence with Rimac’s cutting-edge electric vehicle technology.
However, Porsche has since become a financial challenge for its parent company Volkswagen, experiencing a dramatic decline in profit margins that plummeted to just 1.1% in the previous year, compared to 14.1% in 2024. The company has struggled with U.S. trade tariffs and declining sales in the Chinese market.
Leiters, who assumed the chief executive role at the start of this year, now faces significant pressure to implement cost reductions and generate additional capital.
Rimac announced in November that discussions were underway with Porsche regarding the joint venture’s organizational structure.
BlueFive Capital, which manages $15 billion in assets, confirmed Friday that it joined the investment group led by HOF Capital, a U.S.-based fund co-established by Onsi Sawiris.
BlueFive Capital began operations in November 2024 and maintains offices throughout the Gulf region, London, and Beijing, providing private equity, real estate, infrastructure, and financial services to wealthy individuals, institutions, and retail investors.
Following the transaction’s completion, Rimac Group will assume control of Bugatti Rimac and establish a strategic alliance with BlueFive Capital and HOF Capital to facilitate ongoing expansion, according to BlueFive Capital’s statement.
