Billionaire Lo weighs adding to Formula One investments after Williams

Zhong Jia Guo Xin Holdings

02/08/2022 12:49

By Carolyn Cohn and Selena  Li
    LONDON/HONG KONG, Aug 2 (Reuters) - Hong Kong-based
billionaire Calvin Lo is considering putting more money into
Formula One following his connection with F1 team Williams, Lo
told Reuters in an interview, adding other Asian investors were
also interested in investing in the sport.
    Lo, chief executive of insurance broker RE Lee
International, confirmed he has "some sort of exposure" to
Williams, following the U.S.-based private investment firm
Dorilton Capital's purchase of the team in 2020. He declined to
give more detail, citing non-disclosure agreements.
    Dorilton Capital makes investments for Lo, according to
media reports.
    "A lot of people, me included, are still looking to other
teams, other opportunities, because...there are consistently
good teams but they are not able to come up with the right car,"
Lo said.
    "In Asia right now, there is a lot of liquidity sitting
around, it's mind-blowing. I wouldn't be surprised if the next
news you hear...is maybe some consortium in Asia investing into
some other teams."
    Lo did not name the teams attracting investor interest. 
    Formula One currently has 10 teams, with any new entrant
that is accepted having to pay a $200 million fee to be divided
among the existing teams.
    Existing teams include Ferrari-powered Haas, whose title
sponsor was Belarus-born chemicals billionaire Dmitry Mazepin
until he was sanctioned by the European Union in March,
following Russia's invasion of Ukraine. Haas declined to comment
on investment discussions.
    Williams has suffered financially as a Formula One car
constructor, because unlike manufacturer-owned rivals, there is
no road car business behind it, Lo said.
    Williams posted a loss in 2019, the last year before its
sale.
    
    PANDEMIC INSURANCE BOOST
    RE Lee operates in Hong Kong and internationally, arranging
life insurance polices for ultra-high net worth individuals
through major insurers such as Prudential  PRU.L  and Manulife
 MFC.TO . 
    The broking firm has already arranged policies with premiums
totalling $1.2 billion in the first half, equivalent to its
business for the whole of 2021, which was itself a record year,
Lo said. 
    COVID-19 has increased demand for life insurance for the
super-rich, as they become more aware of their mortality.
    "Whenever there's some sort of pandemic disaster, life
insurance generally does all right" Lo said. "Demand for our
services is huge."
    The previous loose monetary environment has left the
super-wealthy with ample cash to deploy, and life
insurance helps to ease the tax burden from the old to new
generation, he said.
    Pay-outs on the policies give rich families access to ready
cash which can be used to pay inheritance tax bills. The
policies can cost hundreds of millions of dollars. 
    Lo is looking to set up an office in London this year to
service the 8-9% of his clients who have a UK presence.
    Lo also runs a wealth management business and is looking
into buying commercial property in London, though he said it was
not without risk.
    "Property prices in the UK are expensive, some would argue
severely overvalued," he said, adding that "it's almost hard to
value it, every property is so old". 
    Lo bought the five-star Mandarin Oriental Taipei for $1.2
billion in 2018 and is considering similar investments in
London.
    "If you have liquidity...it's maybe something to look at."
    

 (Additional reporting by Alan Baldwin in London; Editing by
Emelia Sithole-Matarise)
 ((carolyn.cohn@thomsonreuters.com; 44 207 513 4391;))