The Saudi Arabian sovereign wealth fund, Public Investment Fund, decided to purchase a minority stake in Italian supercar maker Pagani, the latest move in the Gulf nation’s attempt to enter the auto manufacturing space.
Founded by Italian-Argentine entrepreneur Horacio Pagani in 1992, Pagani has referred to the Public Investment Fund as being an ideal partner going forward. This long-term strategic partnership will see the Pagani family retain control of the management of the company, with assistance from minority shareholders Nicola Volpi and Emilio Petrone, also hailing from Italy.
Horacio Pagani, still CEO and chairman of the San Cesario sul Panaro-based company, described Pagani as “an iconic brand in the hypercars segment as well as to support its [Public Investment Fund] expansion strategy in the lifestyle segment.” UBS Investment Bank acted as Pagani’s financial advisor during negotiations of the deal.
Fueled by Saudi Arabia’s growing interest in the vehicle manufacturing sector, Public Investment Fund has decided to explore the possibility of establishing a domestic electric-car maker, hiring Boston Consulting Group as an advisor during the process. Previously, Public Investment Fund purchased shares in Tesla Inc as well as Lucid Group Inc.
