Southfield Capital has completed a dividend recapitalization of its portfolio company, Vanguard Dealer Services.
Vanguard is an agent and administrator of finance and insurance (F&I) products and services to franchised automobile dealers. Vanguard offers a portfolio of proprietary and third-party auto extended warranty (vehicle service contracts) and ancillary products such as tire protection, key replacement, dent repair and pre-paid maintenance. The company also offers other financial and insurance consulting services to dealers such as training, compensation plan development, reinsurance, incentive management, sales strategy, compliance review, and staffing. Vanguard was founded in 1999 and is headquartered just west of New York City in Fairfield, NJ (www.vanguarddealerservices.com).
Vanguard’s senior management team, led by CEO Jim Polley, along with Ed Reitz and Mike Seergy, invested alongside Southfield Capital to acquire the business in August 2015. “Vanguard has grown due to its relentless pursuit of driving dealer, administrator, and OEM profitability,” said Mr. Polley “We will continue to invest in our systems, processes, and people to ensure that we remain the best-in-class F&I product and training provider in the industry.”
Crescent Capital, an alternative asset manager with over $25 billion of assets under management, provided the financing to support the Vanguard dividend recapitalization transaction. Crescent Capital invests in debt securities at all levels of a company’s capital structure. The firm has more than 160 employees and is headquartered in Los Angeles with offices in New York, Boston, and London (www.crescentcap.com).
“Vanguard has experienced tremendous growth over the last couple of years, more than tripling since the time of our investment three years ago,” said Andy Cook, a Partner at Southfield Capital. “The management team has executed on our initial growth strategy and we are excited to partner with Crescent to capitalize the business for the next stage of growth.”
Southfield Capital makes control investments in companies that have revenues of $20 million to $100 million and EBITDA of $4 million to $12 million. Sectors of interest include outsourced business services, specialty finance, and value-added distribution. In August 2017, the firm held a final close of Southfield Capital II LP with approximately $200 million in capital commitments. The close was at the fund’s hard cap and exceeded its original target of $175 million. Southfield Capital was founded in 2005 and is headquartered in Greenwich, CT (www.southfieldcapital.com).
© 2018 Private Equity Professional | October 31, 2018