In the spring of 1999, Brian Powers, a senior partner of San Francisco private equity firm Hellman & Friedman, heard that Bernie Ecclestone's auto racing empire might be up for sale. The family trust that ultimately controlled Formula One Holdings and all the related companies run by the self-made billionaire, supposedly wanted to sell a 50 percent stake in the business for estate-planning purposes.

Powers recognized right away that this was an intriguing property: The holding company, SLEC Holdings, controlled virtually all of the commercial and media rights to the hugely popular Grand Prix racing circuit. Through a mutual friend in Australia, Powers arranged to meet Ecclestone (who was recovering from heart surgery) at his London office. To the banker's surprise, the hard-charging onetime race driver purported not to care who bought the stake -- as long as the price was right.

Powers asked Ecclestone what qualities he was seeking in...