Porsche Divests Bugatti Rimac Stakes in Portfolio Refocus
Porsche has agreed to divest its equity holdings in hypercar manufacturer Bugatti Rimac and Rimac Group to a consortium led by New York investment firm HOF Capital, marking a strategic refocusing of the German automaker's portfolio towards core operations.
The transaction will see Porsche exit its 45% minority stake in Bugatti Rimac, a joint venture established in 2021, along with its 20.6% holding in Rimac Group.
The deal represents a significant shift in Porsche's capital allocation strategy as the company streamlines its investment portfolio.
The divestiture concludes a chapter that began in 2018 when Porsche initially backed Croatian startup Rimac, recognising its high-performance battery technology as strategically valuable.
Over three years, Porsche incrementally increased its stake to 24%, establishing the corporate relationships necessary to facilitate "Operation Rush" – the internal designation for the complex 2021 transaction that enabled Volkswagen Group to transfer Bugatti into a joint venture structure.
Porsche's then CEO Oliver Blume and CFO Lutz Meschcke led the deal making that convinced Volkswagen Group to contribute its wholly-owned Bugatti subsidiary to the Croatian firm, with Porsche subsequently retaining a 45% stake in the newly formed entity.
Financial rationale for divestiture
The decision to exit these holdings reflects a broader portfolio rationalisation strategy under current leadership.
Porsche CEO Michael Leiters says: "In setting up the joint venture Bugatti Rimac together with Rimac Group, we successfully laid the foundation for Bugatti's future.
“And as an early-stage investor of Rimac Group, Porsche made a significant contribution to developing Rimac Technology into an established tier-1 automotive technology company.
“Now, with the sale of our stake, we demonstrate that we will focus Porsche on the core business. We would like to thank Mate Rimac and his team for the constructive and trusting cooperation over the past years."
Transaction documents were executed on 24 April 2025, with completion contingent upon regulatory approvals and anticipated by December 2026.
The acquiring consortium is led by HOF Capital, with BlueFive Capital participating as the largest investor alongside institutional investors from the United States and European Union.
The deal structure will see Rimac Group assume control of Bugatti Rimac while forming a strategic partnership with HOF Capital and BlueFive Capital to fund continued expansion.
HOF Capital will become the largest shareholder in Rimac Group alongside Mate Rimac, who serves as founder of Rimac and CEO of Bugatti Rimac.
Corporate governance and strategic positioning
Porsche's involvement provided corporate governance frameworks and financial stability that enabled Rimac to modernise Bugatti's operations.
Porsche executives maintained oversight during the development of the V16 Tourbillon, acting as a strategic anchor until the divestiture announcement.
Mate Rimac, CEO of Bugatti Rimac, says: "Porsche has been a crucial partner, and we are deeply grateful for their role in establishing Bugatti Rimac.
With the strong foundations their support has provided, we now have a structure that allows us to execute even faster on our long-term vision. We look forward to our collaboration with our new partners."
At the time of the 2021 joint venture formation, former CEO of Porsche, Oliver Blume said: "We are combining Bugatti's strong expertise in the hypercar business with Rimac's tremendous innovative strength in the highly promising field of electric mobility.
“Bugatti is contributing a tradition-rich brand, iconic products, a loyal customer base and a global dealer organisation to the joint venture. In addition to technology, Rimac is providing new development and organisational approaches."
Asset performance and valuation considerations
Bugatti's business history spans over a century of engineering development since its 1909 founding.
The French manufacturer experienced multiple bankruptcy proceedings before Volkswagen Group acquired and revived it in 1998, launching the modern hypercar segment with the W16-powered Veyron and Chiron models.
By 2021, industry transition towards electrification had created strategic challenges for brands focused on internal combustion technology. The Bugatti Rimac joint venture was structured to address this positioning, combining Bugatti's brand equity with Rimac's electric vehicle capabilities.
Under Rimac's operational leadership, the joint venture developed hybrid-electric performance technology over four years.
This resulted in the 2024 launch of the Bugatti Tourbillon, featuring an 1,800-horsepower V16 hybrid powertrain. The company also prioritised development of the Rimac Nevera electric vehicle.
Hisham Elhaddad, Co-Founder and Managing Partner of HOF Capital, says: "For over a century, Bugatti has stood apart as a brand where heritage and innovation coexist at the highest level.
“We are proud to partner with Mate Rimac and his team to help shape the next chapter, balancing disciplined growth with a tradition of craftsmanship and originality that remains unmatched."
