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Carlyle drives COTALand toward its grand opening
by Lisa Fu
An auto circuit in Texas that hosts Formula One races is set to open a much-anticipated theme park later this month. The project has been a long time coming, but a name already associated with motorsports is helping to get it over the finish line.
Carlyle closed a private credit deal in August that clears the way for Circuit of the Americas (COTA), based in Austin, Texas, to launch COTALand, a trackside amusement park, offering visitors a range of thrilling rides and motorsport activities.
For a development inspired by speed, the park has not exactly had a rapid route to completion, having first been proposed back in 2021. In the end, the deal came down to flexibility and the expertise of a team with a track record in sports finance.
“We have spent an incredible amount of time looking at different opportunities in and around motorsport,” Ben Fund, a partner in Carlyle’s credit opportunities team, told Creditflux. “We obviously have our highly publicised partnership with Oracle Red Bull Racing.”
COTALand flags its racing roots with rides such as the Circuit Breaker tilt coaster
Image credit: Larry D. Moore
Formula One sponsor
The global alternative asset manager signed a sponsorship deal with the UK-based Formula 1 team last year, earning a place on its racing livery as an official partner. Carlyle’s credit opportunities fund has long focused on the sports, media and entertainment sector, previously looking at investments in the supply chain, the sports-distribution business, teams and leagues.
Still, the COTALand deal took eight months to hammer out, covering both the park and plans for further developments. “Any time you structure some of these bespoke investments, it takes real time from a legal due-diligence and negotiation perspective,” said Fund.
He said Lazard, which advised on the deal, brought in Carlyle for its ability to deliver customised solutions ranging from senior-secured private debt through structured preferred and convertible equity.
Ultimately, Carlyle agreed to provide hybrid private capital that sat junior to the more inexpensive senior debt provided by a regional relationship bank. Up to this point COTA chairman Bobby Epstein had mostly relied on traditional financing channels, unlike many private equity sponsors used to tapping the world of private credit.
It made sense to retain the links to some of the existing capital partners that have supported the business, while broadening out the financing for the next phase of growth, Fund said.
The firm reviewed all the existing revenue streams associated with COTA, such as its music venue and music assets, motorsport events and more, including its contracts with Formula 1 and MotoGP.
The doors are set to open on the park in late September, although a few rides were rolled out in the interim. The park has targeted launch dates before, only to pull back. The Austin Business Journal reported in March 2025 that the original plan was to open by October that year.
Delayed opening
The grand unveiling was delayed, but Carlyle was happy to get on board after much of the development work was already done, applying its broad capabilities to what Fund described as a “cool” combination of mixed-use real estate, motorsport infrastructure, services, hospitality and live entertainment.
Texas already boasts a lively theme-park industry, with major attractions in San Antonio and Arlington under the Six Flags brand.
COTALand aims to capitalise on the motor racing connection, with its Hot Lap simulator and state-of-the-art rides such as the Circuit Breaker tilt coaster.
The owners and backers are betting that COTALand will be a hit with the local population and out-of-state tourists looking to share in the thrill of the race.
