NEW YORK–(BUSINESS WIRE)–Velocity Capital Management, a private equity firm specializing in value-add investing in high growth companies across the sports, media, and entertainment ecosystem, today announced that its Velocity Opportunity Fund has acquired Parella Motorsports Holdings, the largest owner and operator of grassroots motorsports live events racing classifications across the U.S. and Canada. Terms of the transaction were not disclosed.
“After achieving accelerated growth over the past 12 years, I have been seeking the right partner to help me realize my vision for Parella Motorsports and I am thrilled to be collaborating with the Velocity team,” said Tony Parella, Chief Executive Officer of Parella Motorsports Holdings. “Their hands-on, value-add approach and domain expertise within the sports and entertainment sectors are exactly what our company needed to grow both organically and through acquisitions, which will help ensure we achieve our true potential. I am excited to lead us through this next chapter in our growing motorsports operation.”
Tony Parella founded the company in 2012 and has built an industry leading brand and platform with premiere events at iconic racetracks, including Indianapolis Speedway, Circuit of the Americas, Laguna Seca, Watkins Glen, Road Atlanta, and Lime Rock. The Company owns a diversified portfolio of intellectual property including the Sportscar Vintage Racing Association (“SVRA”), the largest vintage racing organization globally, and the Trans Am Series presented by Pirelli, the legendary and longest-running road racing series in the U.S. Additionally, Parella operates Formula Regional Americas and Formula 4 in the U.S., the first two professional levels of the Formula 1 ladder.
David Abrams, Co-Founder and Managing Partner of Velocity, said, “We welcome Tony and the entire Parella team to our family. Tony will remain as CEO and he has built a tenured and experienced senior leadership team that is aligned to create long-term shareholder value. We have assembled an incredible group that will work with management and Velocity to execute our growth initiatives. Our co-investors, Cohesive Capital which exclusively invests in sponsor led transactions, and Bolt Ventures, David Blitzer’s Family Office, provide both significant institutional investment acumen and deep industry connectivity. In addition, Jeffrey Wolf, previously a media executive at Scripps Networks and Sony Pictures Television, and Andy Lustgarten, former CEO of Madison Square Garden, will join the company’s Board.”
“The Parella investment is a perfect complement to our existing portfolio as we have already begun cross-pollinating the Company with our portfolio companies and leveraging our own direct operating experience to further commercialize the business and improve the monetization of the Company’s intellectual property,” said Arne Rees, Velocity Co-Founder, Partner, and Board Chairman. “We believe that two of our portfolio companies specifically, Elevate, a best-in-class sports and entertainment consulting firm and Videocites, the leader in sponsorship valuation and fan engagement tracking across social media, will greatly accelerate the Company’s growth trajectory. Additionally, Delaware North, a leading global hospitality and entertainment company and one of Velocity’s strategic partners, is also actively engaged in a range of revenue maximization initiatives.”
About Velocity Capital Management
Velocity Capital Management is a private equity firm that collaborates with visionary founders and executive teams to build the next generation of best-in-class global businesses at the intersection of sports, media, entertainment, and technology. Velocity’s leadership has nearly 60 years of institutional investment experience through numerous market cycles and across multiple asset classes, industries, and geographies. We combine this investment acumen with our domain expertise gained through ownership and operational roles across the sports, media, and entertainment ecosystem. For more information about Velocity, please visit www.velocitycm.com.
About Parella Motorsports Holdings
Parella Motorsports Holdings (PMH) owns five major road racing series and hosts racing festivals across the United States under the SpeedTour brand name. With Sportscar Vintage Racing Association (SVRA), The Trans Am Series presented by Pirelli, Formula Regional Americas (FR Americas), Formula 4 United States Championship (F4 U.S.) and Prototype Sprint Series Association, PMH had more than 5,500 racing entrants during the 2023 season. Additionally, PMH also holds the long-term commercial rights to SCCA Pro Racing, which sanctions Trans Am, FR Americas, F4 U.S., Formula Race Promotions and Formula 2000. Together, with all of its racing properties, PMH hosts motorsports festivals under the name SpeedTour. These events include car shows and concerts and attract thousands of spectators, with many of the events live streamed on SpeedTour TV’s YouTube page. For more information about PMH’s SpeedTour events, please visit www.SpeedTour.net.
About Cohesive Capital Partners
Cohesive Capital Partners is a New York-based private equity firm, exclusively focused on private equity co-investments alongside leading sponsors. The firm has invested in 65 portfolio companies alongside 56 unique sponsors since inception in 2010. Cohesive is currently investing out of Cohesive Capital Partners IV, L.P., a 2023 fund with over $400 million in commitments. For more information about Cohesive, please visit www.cohesivecapital.com.
