The RAC is aiming for an initial public offering (IPO) in London later this year. The RAC, which was founded in 1897 as the Automobile Club of Great Britain, is owned by buyout firms CVC Capital Partners and Silver Lake Partners and the Singaporean state investment fund GIC. Initially, the private equity owners were targeting an IPO earlier in 2026, but this has been delayed.
According to the Financial Times, in mid-December 2025, a sale was also being considered, with the owners seeking around £5bn, but it is understood that an IPO is the favoured option. The RAC has over 15 million members and posted earnings of £329 million in 2025, an increase of 12% on the previous year.
In a parallel move in the UK vehicle breakdown services sector, the AA is also looking for a possible sale, again in the region of £5bn. To extend the parallel further, the AA is also backed by private equity, with TowerBrook Capital Partners, Warburg Pincus and Stonepeak as the owners. The AA was formed in 1905 and now has over 14 million members. Interestingly, the AA was originally called the Motorists’ Mutual Association and was set up by a group of motoring enthusiasts who banded together to warn fellow drivers about police speed traps.
Both the RAC and the AA have branched out from breakdown services to cover a wide range of motoring-related offerings, are backed by private equity and are looking to change their ownership in 2026.
The third-largest breakdown cover provider in the UK bucks the trend of private equity ownership. Green Flag is owned by the insurance company Direct Line, which acquired it in 1999.
According to the research company Mintel, the AA and RAC have a combined revenue share of nearly 85%.
Floatation? Going into the boat business, are they?
earnings? is that the same as profit returned to shareholders? Not that great on £5B is it?