The Circuit of The Americas in Austin, Texas, has secured a new partnership with global investment firm Carlyle as the home of Formula 1’s United States Grand Prix prepares for a major expansion. The new financing will support COTA’s ambition to transform the venue into a much larger mixed-use destination over the next decade, as Formula 1’s presence in the United States continues to grow.
Carlyle will provide the capital through its Global Credit platform, giving COTA access to new funding for the next stage of the property’s development. The amount being made available has not been disclosed, while COTA’s ownership structure will remain unchanged and the transaction does not involve the sale of an equity stake. Carlyle had already established a direct connection with Formula 1 through its partnership with Red Bull the previous year.
COTA expansion includes theme park, water park and resort
COTA is currently preparing to open a theme park within the circuit complex and intends to follow it with the addition of a water park, as well as a resort and further facilities aimed at fans and VIP guests.
The resort and golf course project is being planned alongside RIDA Development. The plans include 1,000 rooms, a golf course and a convention centre covering approximately 158,000 square metres.
COTA chairman Bobby Epstein explained: “What they have created is a tool that allows us to have the capital we need to grow and execute the businesses that already exist. What is happening is that we have a confluence of significant spending events that are all concentrated within a four-month period.”
The investment represents another step in COTA’s evolution from a circuit primarily associated with motorsport into a year-round entertainment destination. Since joining the Formula 1 calendar in 2012, Austin has also had to adapt to a very different American F1 landscape, with Miami and Las Vegas subsequently joining the championship.
How Carlyle’s financing agreement with COTA works
Carlyle partner Ben Fund explained that the deal fits the approach used by Carlyle Global Credit, which focuses primarily on providing liquidity to family-run or founder-owned businesses without acquiring controlling stakes. Around 85% of the investments made by a $7 billion fund follow this model.
Ben Fund added that Carlyle has extensive experience investing in sport, media and entertainment and expressed the expectation that the relationship with COTA will become a long-term partnership.
“We are not control-oriented investors, and the beauty of our mandate is that we can sit down with extraordinary entrepreneurs like Bobby, listen to exactly what they need, the problems they want to solve and the growth initiatives they have, and then create financial instruments that support the objectives of the businesses we partner with,” Ben Fund said.
Austin’s Formula 1 deal runs until 2034
COTA extended its Formula 1 agreement last year to keep hosting the United States Grand Prix through 2034. The contract is shorter than those covering Formula 1’s other two American events: Miami’s agreement runs through 2041, while Las Vegas is contracted through 2037.
The difference highlights the increasingly competitive Formula 1 environment within the United States. Austin was once the championship’s sole American stop, but it now shares the market with two high-profile events in Miami and Las Vegas. The wider structure of the season can be followed through the 2026 Formula 1 calendar, while COTA’s history and records can be explored in the F1 Circuit Records & Statistics section.
Part of COTA’s Formula 1 agreement includes a commitment to expand the Paddock Club and other areas of the facility, as Bobby Epstein pointed out. The investment therefore comes as the Austin venue works not only on its broader commercial transformation but also on improvements directly connected to its long-term Formula 1 commitments.
COTA says only 30% of its wider vision has been completed
Austin used Lazard as its financial adviser and Sidley Austin as legal counsel on the transaction, while Carlyle was advised by DLA Piper. Carlyle also owns Seattle Reign in the NWSL and is among the investment firms authorised to acquire minority stakes in NFL franchises.
Bobby Epstein said he was impressed that Carlyle executives had already visited Austin several times for the Formula 1 event and appreciated the flexibility they demonstrated when structuring the transaction.
He added that COTA has so far completed only around 30% of its wider vision to transform the venue into a mixed-use complex. That leaves substantial scope for further development as the circuit attempts to establish itself as a destination throughout the year rather than one centred primarily on its biggest race weekends.
Ben Fund concluded: “When we look at the opportunities, the growth, the fan excitement and the global appeal of F1, those are things we have spent a lot of time on. When we were introduced to Bobby and what he is building in Austin, we felt we had to be part of it.”
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