Formula 1’s newest constructor is navigating more than just its first season on the grid. Cadillac F1, the American entrant backed by General Motors and majority-owned through TWG Motorsports, sits at the center of growing speculation about its ownership structure amid intense financial and legal pressure on co-chairman Mark Walter.
–by Mark Cipolloni–
Walter, the Guggenheim Partners CEO and TWG Global founder, controls a sprawling portfolio that includes majority stakes in the Cadillac Formula 1 team (in partnership with GM), Andretti Global’s IndyCar and related programs, Spire Motorsports in NASCAR, and other racing entities. Cadillac debuted in 2026 as the first new independent constructor since Haas in 2016, running Ferrari customer engines initially with plans for a GM power unit later. The team has faced the typical growing pains of a start-up: rear-of-grid results, reliability issues, and a mid-season change of team principal from Graeme Lowdon to Marcin Budkowski.
Marcin Budkowski Cadillac F1 Team Principal
The pressure on Walter stems from a federal investigation by Manhattan prosecutors and the Securities and Exchange Commission. Authorities are examining roughly $16–20 billion in private-credit loans made by insurers he controls—Delaware Life and Clear Spring—to entities linked to him or TWG Global. These were allegedly not properly disclosed as related-party transactions, a requirement designed to protect policyholders from conflicts of interest. Intermediaries including ABS Capital, Amistad Financial, Bradford Allen, and Hudson Trading have drawn focus. The insurers received grand jury subpoenas, ratings outlooks turned negative, and the FBI previously seized Walter’s phone and computer. No charges have been filed, and TWG maintains it is cooperating and acted in good faith.
Walter faces a practical deadline of December 31 to address approximately $20 billion of these loans on the insurers’ books. Options are constrained:
– Selling the loans is difficult while the paper sits under grand jury scrutiny.
– Organic growth sufficient to rebalance the ratio would require the business to expand dramatically in a short window.
– Reinsurance structures risk leaving problematic loans behind while better assets depart, potentially worsening ratios.
– The most straightforward path is raising cash through asset sales and repayment.
The recent $12.5 billion sale of the Los Angeles Lakers (purchased for $10 billion the prior year) has covered a substantial portion—roughly a third—of the exposure. Walter has also been reported as open to selling his stake in Chelsea FC. TWG has approached outside investors for capital, and further disposals remain under discussion.
A TWG Global spokesperson has stated the company is “not considering a sale of the Cadillac team or any other part of TWG Motorsports.” Yet the capital intensity of Formula 1—hundreds of millions in start-up costs, ongoing budgets under the cost cap, facility development, and a future engine program—makes the stake an attractive liquidity candidate if pressure intensifies. GM holds a partnership interest and could seek greater control or restructuring. External buyers, from manufacturers to private equity or high-net-worth individuals, could emerge at potentially distressed valuations.
Enter Christian Horner. The former Red Bull team principal, ousted in 2025 after two decades that delivered multiple championships, has been linked to multiple potential returns: a consortium interest in Alpine’s minority stake, talks around Aston Martin, and exploratory discussions with Chinese manufacturer BYD about a possible future entry. Earlier rumors of Horner joining Cadillac itself were firmly denied by TWG Motorsports CEO Dan Towriss in 2025. No current reports confirm active negotiations for Walter’s share. However, Horner’s deep operational expertise, commercial contacts, and availability make him a logical figure in any scenario where a high-profile F1 stake becomes available. A “swoop” would require significant capital and alignment with GM, the FIA’s fit-and-proper standards, and the Concorde Agreement.
For now, the situation remains fluid. The investigation is open without determinations of fraud. Cadillac continues racing, Andretti Global’s IndyCar programs operate, and official statements reject immediate sales of the motorsports assets. Yet the combination of a hard year-end deadline, limited clean options to clear the loans, and Walter’s demonstrated willingness to liquidate high-profile sports holdings (Lakers, potential Chelsea) keeps the possibility of ownership change alive.
Whether Christian Horner ultimately emerges as a buyer of Walter’s Cadillac stake is pure speculation at this stage. What is clear is that the financial and legal overhang on TWG Global has placed one of Formula 1’s newest teams under an unusual spotlight—just as it tries to establish itself on the grid. Developments between now and the end of the year will determine if the American project stays under its current ownership or becomes the latest high-stakes asset in play.