Forest Road, the US investment firm, has acquired a 100% stake in the ERT Formula E Team, which has rebranded to Kiro Race Co after the takeover.
The deal was struck with previous owners Lisheng Sports and Gusto Engineering in China and Hong Kong, respectively.
Capital for the acquisition was provided by David Kaplan and Bennett Rosenthal, co-founders of the Ares Management firm. Kaplan will act as managing partner of the team.
The independent team today also announced a technical partnership with Porsche Motorsport.
This collaboration will see Kiro Race Co use Porsche's powertrain technology.
The team, newly rebranded ahead of season 11 of the Formula E World Championship (set to begin in early December), will race under an American licence while maintaining its base at Silverstone in England.
The Los Angeles-based investor in media and renewable energy sectors sees “huge potential and growth” in the all-electric series, particularly following Liberty Global’s majority shareholder takeover in June.
Formula E also claims its global TV audience grew by 35% to 491 million in season 10, and that it has increased its global fanbase by 23%.
Jeremy Tarica, managing director of Forest Road, said: “The championship is at a pivotal moment of maturation from a macro and micro perspective.
“As the world embarks on a massive transition to electric vehicles, the race product has achieved a significant breakthrough in technology with the fastest accelerating single-seater cars. We are committed to helping Kiro become a leading force in the industry."
Jeff Dodds, CEO of Formula E, added: "This is a fantastic development for Formula E and for Kiro Race Co. It marks the entry of a sophisticated investor group with a strong track record in the sports and entertainment industry.
“This investment in the team and its ambitious new owners will help us continue to grow the Championship and make it more attractive to fans and partners around the world.”
ERT, standing for Electric Racing Technologies, officially joined the grid ahead of the 2023-24 season after the squad previously known as Nio 333 ended its collaboration with Chinese manufacturer NIO.
Before that, the team had existed under various names since the all-electric championship's formation back in 2014-15, including NEXTEV/Team China Racing - which won the inaugural drivers’ title through Nelson Piquet Jr.
The team struggled for performance last season, however, finishing 11th and last in the teams’ standings.
The 11th season of Formula E will feature 17 races, beginning with the Sao Paulo ePrix in Brazil on 7 December.
