Porsche has agreed to fully exit Bugatti Rimac. A consortium led by New York venture capital firm HOF Capital will acquire Porsche's 45% stake in the supercar joint venture, which began in 2021.
The transaction also covers Porsche's 20.6% shareholding in Rimac Group, the Croatian electric hypercar manufacturer, which it will relinquish as part of the same agreement. BlueFive Capital, a private equity firm with $15 billion in assets under management, is the consortium's largest investor. Financial terms were not disclosed, though according to Reuters, Bugatti Rimac carried a valuation of over $1 billion.
Once the deal closes, Rimac Group will take full control of Bugatti Rimac's daily operations. Rimac Group will also form a strategic partnership with HOF Capital and BlueFive Capital to help grow the brand, according to the companies.
Porsche CEO Michael Leiters, who took over at the start of the year, has been under pressure to shed non-core assets and free up capital. "With the sale of our stake, we are focusing Porsche on the core business," Leiters said in a statement.
Porsche is selling its stake while facing major financial challenges. The company's profit margins fell to just 1.1% last year, down from 14.1% in 2024. Operating profit dropped by 93%, with U.S. tariffs and weaker demand in China among the main reasons, according to Reuters.
Porsche and Rimac Group started the joint venture in 2021, combining Bugatti's reputation in hypercars with Rimac's electric technology. Rimac Group held a 55% majority, making Porsche the minority partner. Reuters said Mate Rimac had already tried to buy Porsche's share, making an early bid that valued the joint venture at just over €1 billion.
HOF Capital was co-founded by a member of Egypt's Sawiris family. Hazem Ben-Gacem, a former senior executive at Investcorp, started BlueFive Capital. BlueFive is based in Abu Dhabi's financial center and also operates in the Gulf, London, and Beijing. The firm said its investment is only in Bugatti Rimac and not in Rimac Group.
"With the strong foundations [Porsche's] support has provided, we now have a structure that allows us to execute even faster on our long-term vision," Mate Rimac said in a statement.
Porsche stock dropped 1.6% in early trading on Friday.