Why Porsche is Selling its Equity Stakes in Bugatti Rimac

Porsche is selling its equity stakes in ultra-luxury hypercar maker Bugatti Rimac and Rimac Group to a consortium led by New York-based investment firm HOF Capital. 

The German brand holds a minority stake of 45% in Bugatti Rimac, a joint venture firm formed in 2021 through the merger of two high-performance automotive manufacturers: Rimac Automobili and Bugatti Automobiles. 

Porsche played a key role in the 2021 deal. 

Prior to this date, Bugatti was a wholly-owned subsidiary of the Volkswagen Group until Porsche’s leadership team of then-CEO Oliver Blume and CFO Lutz Meschcke convinced VW to ‘contribute’ Bugatti to the Croatian Rimac group. 

Porsche will fully divest its equity stakes in Bugatti Rimac and the 20.6% stake it holds in Rimac Group following completion of the recently announced transaction. 

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.”

Building Bugatti Rimac 

Porsche first backed Rimac in 2018, identifying the Croatian startup as a vital source for high-performance battery technology. 

Over three years, the German company increased its stake to 24%, building the trust necessary to broker "Operation Rush” – the internal codename for the complex 2021 deal that allowed the Volkswagen Group to offload Bugatti into a joint venture without a traditional sale. 

At the time, 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.”

Porsche retained a 45% stake in the newly formed organisation, providing the corporate governance and financial stability Rimac needed to modernise the historic French brand. 

Since then, Porsche executives have overseen the development of the V16 Tourbillon, acting as a strategic anchor until its recent divestiture announcement. 

Inside the sale

Transaction documents for the sale of Porsche’s stakes were signed on 24 April, with completion subject to regulatory clearances and expected before the end of 2026. 

Under the deal Porsche’s equity in Bugatti Rimac and Rimac Group will be fully divested to a consortium led by HOF Capital that includes BlueFive Capital as its largest investor, as well as a group of institutional investors in the US and EU. 

Porsche CEO Dr 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.”

Following completion, 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. 

HOF Capital will additionally join Rimac Group as the largest shareholder alongside Mate Rimac, founder of Rimac and CEO of Bugatti Rimac.

“For over a century, Bugatti has stood apart as a brand where heritage and innovation coexist at the highest level,” says Hisham Elhaddad, Co-Founder and Managing Partner of HOF Capital. 

“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.”

Tradition of hypercar innovation

Bugatti’s legacy is defined by over a century of engineering excellence and unmatched exclusivity. 

Founded in 1909, the French marque survived several bankruptcies before the Volkswagen Group revived it in 1998, establishing the modern hypercar era with the W16-powered Veyron and Chiron. 

However, by 2021, the industry’s shift toward electrification made the brand's heavy internal combustion focus a strategic liability. The formation of Bugatti Rimac in November 2021 helped tackle this dilemma. 

Under Mate Rimac’s leadership, the joint venture spent the next four years merging Bugatti’s heritage with Rimac’s software-defined agility. 

The primary focus shifted toward hybrid-electric performance – a bridge between past and future. This culminated in the 2024 launch of the Bugatti Tourbillon, which replaced the W16 with an 1,800-horsepower V16 hybrid powertrain.

Simultaneously, the firm prioritised the Rimac Nevera, which shattered over 20 world records to become the benchmark for electric performance. 

By 2026, the company had successfully transitioned from a niche division of a German conglomerate into a self-sustaining technology powerhouse.