IndyCar/F1: As it prepares to enter F1, Andretti team takes on co-owner(s)

–by Mark Cipolloni–

Following Andretti Autosport’s 1-2-4 finish at the IndyCar Long Beach Grand Prix Sunday, it was revealed that CEO and president of Group 1001 Dan Towriss is now co-owner of the team.

The IndyStar published an exclusive interview with Towriss where he confirms his co-ownership of Andretti Autosport.

However, I think there may be another minority co-owner in the team as well – keep reading.

This is not surprising as Towriss was present at the groundbreaking for the new Andretti Headquarters in Fishers, Indiana last year, his Gainbridge Insurance brand sponsors Colton Herta, and he has been instrumental in helping Michael Andretti raise the money needed ($200 to $600 million) to enter a team in F1 if approved by the FIA later this year.

When Michael Andretti went up to receive the winning owner’s trophy after the Acura GP of Long Beach, Towriss joined him in accepting the trophy.

Dan Towriss_ CEO of Gainbridge and wife Cassidy – By_ Joe Skibinski

In the Indy Star interview, Towriss declines to answer how big of a stake he owns in the team, and we may never know as these investment mavens are good at hiding their investments in various companies.

Towriss is an insurance industry veteran with over 25 years in the life insurance industry. As a founder of Group 1001, Dan has led a number of successful insurance company acquisitions and company restructurings with the goal of improving income and capital levels to create long-term value and job growth.

His business and investment connections are key, and it would not surprise me if Mark Walter, the CEO of Guggenheim Partners is also a minority owner in the team through his connections with Towriss.

During the groundbreaking for the new Andretti headquarters, among those Andretti thanked during his speech was Group1001 CEO Dan Towriss and Los Angeles Dodgers principal owner and Guggenheim Partners CEO Mark Walter.

Prior to the groundbreaking ceremony, Andretti resisted naming the investors who financially backed his plan of creating an F1 team, but it is now clear Walter supports the idea.

Walter, the CEO of Guggenheim Partners, has vast experience financing sports and his estimated net worth is around $5.3 billion. Along with being the principal owner of the Dodgers, he owns minority stakes in the Los Angeles Lakers and Los Angeles Sparks.

Walter also recently purchased the Chelsea Football Club, and earlier this year, began negotiations with the Professional Women’s Hockey Players Association (PWHPA) to explore the launch of a new professional women’s hockey league.

So expanding ownership into a team possibly headed to Formula 1 appears right up his alley. And Towriss is also a minority owner of the LA Dodgers with Walter, so who knows how many companies they are co-invested in together.

Breaking ground at the new Andretti Global facility, from left, Michael Andretti, Daniel Towriss (CEO of Group1001 who is helping to finance much of the deal), Mario Andretti and Marissa Andretti – VP of Andretti Autosport and Managing Director, Andretti Technologies. Not pictured – Mark Walter

Mark Walter, CEO of Guggenheim Partners, and he might be a minority co-owner in Michael Andretti’s parent company – Andretti Global.

But there is more….

In doing my research for this article, I found that Andretti Acquisition Company (WNNR – stock symbol) filed no less than seven SEC form 13G’s listing investment companies that bought 5% or more of the WNNR shares in the last 15 months.

78.48% of the WNNR shares owned are by institutions/companies. There are currently 28.8 million shares outstanding and today’s closing price was $10.51

Andretti Acquisition Corp is a blank check company. The Company is incorporated for the purpose of effecting a merger, share exchange, asset acquisition, share purchase, reorganization or similar business combination with one or more businesses or entities to focus on opportunities that can benefit from the Andretti brand name, both inside and outside the worldwide motor sports.

This smells of Towriss and Walter using their business connections to get other investors involved. Examples that I found of companies buying 5% or more of the company shares:

Apollo SPAC Fund I, L.P.
Highbridge Capital Management, LLC (Two 13Gs filed)
Shaolin Capital Management LLC
Andretti Sponsor LLC – this could be Dan Towriss since his Group101 is a sponsor of the Andretti team
Sculptor Capital LP
Aristeia Capital, L.L.C.

But there is still more…..

We are told that the FIA wants to see in any application to be a new team in F1 that you have at least $500 million available to invest in the operation, each year, for 5 years.

If my sources are correct, Andretti, therefore, has to show in his application that he has $2.5 billion in financing behind his proposal.

The Andrettis are racers, and good ones at that.

They are not business people that know how to raise $2.5 billion in notes to back an F1 team.

That’s where people like Dan Towriss, Mark Walter and their other Capital Investment company connections come in. They have the business and finance acumen to help Michael Andretti in his F1 application and perhaps other business opportunities going forward.

Conclusion….

Just how many people or companies may be minority co-owners in Andretti Autosport and Andretti Global, the company applying to the FIA to enter a team in F1, is unknown, and we likely will never know because we doubt the FIA will publish financial details listed in the applications of each group hoping to be accepted into F1 as the 11th and 12th teams.