BlueFive Capital backs VC HOF Capital’s acquisition of a stake in Bugatti

Since its launch in 2024, private equity firm BlueFive Capital — headed by former Investcorp CEO Hazem Ben-Gacem — has been involved in many high-profile, big-ticket transactions. The latest one is in the automotive sector: The PE firm is the largest investor in a consortium led by US-based VC HOF Capital acquiring automaker Porsche's complete stake in supercar brand Bugatti, according to a statement (pdf).

What we know about the transaction: HOF now holds a 45% share in JV Bugatti Rimac alongside Croatian automotive-focused investment holding company Rimac Group with a 55% share. The size of the investment ticket has been kept confidential, although informed sources told Bloomberg in December the valuation is in USD 1.2 bn territory.

What’s next for Bugatti? After the agreement is given the final rubber stamp after regulatory clearances before the end of the year, “Rimac Group is set to take control of Bugatti Rimac and form a strategic partnership with HOF Capital and BlueFive Capital to support its continued growth,” the statement notes. HOF Capital will also become the largest shareholder in Rimac Group.

BlueFive has so far bankrolled an Abu Dhabi-based AI firm, a digital bank, and a Saudi ins. player, among others. It was also tapped as a general partner for a China-focused fund of funds, and closed a USD 3 bn fund to invest in US and Europe-based tech companies. The mandate seems to be: go global, and fast. The firm has managed to accumulate USD 7.4 bn in assets under management as of February.

As for what’s next for BlueFive…

The firm is shifting its focus on defense next. It’s working on raising USD 3 bn to invest in aerospace and defense, with an initial USD 1 bn first close targeted by 3Q, with a focus on companies aligned with Nato technologies.