Private equity firm Velocity Capital Management has acquired North American grassroots motorsport operator Parella Motorsports Holdings (PMH). Company founder Tony Parella will continue as CEO.
PMH, which was founded by Parella in 2012, owns five major road racing series and hosts racing festivals across the United States under the SpeedTour brand name. Between SVRA, Trans Am, FR Americas, F4 U.S. and the Prototype Sprint Series Association, it had more than 5,500 competitors 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.
“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 Parella.
“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.”
Velocity specializes in value-add investing in high growth companies across the sports, media, and entertainment industries, and co-founder, partner and Board Chairman Arne Rees said that PMH will be a natural fit.
“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 Rees.
Terms of the transaction were not disclosed.