Frontenac Company has acquired the Portfolio Group, a provider of financial services to automobile dealerships. This represents the first investment in Frontenac’s 10th investment fund, Frontenac X Private Capital Limited Partnership, a fund formed in 2012.
The Portfolio Group is a provider of outsourced financial services to automobile dealerships. Portfolio Group manages all facets of automobile dealers’ aftermarket, extended warranty and vehicle service contract programs, including establishing and administering dealer-owned risk transfer and reinsurance. The company is based in Irvine, CA (www.portfolioreinsurance.com).
Joining the Portfolio Group Board of Directors as Chairman is Thomas Dattilo, Frontenac’s executive partner on the Portfolio Group project. Mr. Dattilo is a 37 year automotive industry veteran who formerly served as Chairman, President, and CEO of Cooper Tire & Rubber. Prior to Cooper Tire, Mr. Dattilo spent many years in senior positions with Dana Corporation, including Group President of Global Sealing and Distribution. He is currently Chairman of the Board of Harris Corporation, a Fortune 500 information and technology company, and a Director of Haworth, Inc. and Solera Holdings. Mr. Dattilo previously served on the Board of Directors of Alberto-Culver.
Frontenac Company invests in mid-sized businesses that operate primarily in services industries. Since founding in 1971, Frontenac has made over 225 founder-owner investments across nine private equity funds. The firm is based in Chicago (www.frontenac.com).
LBC Credit Partners provided a credit facility and an equity co-investment to support Frontenac’s investment in the Portfolio Group. LBC Credit Partners was the Sole Lead Arranger, Sole Bookrunner and Administrative Agent for this transaction.
LBC Credit Partners is a provider of middle market financing including senior term, unitranche, second lien, junior secured, and mezzanine debt; and equity co-investments to companies with EBITDAs generally greater than $10 million. LBC invests from $10 million to $50 million per transaction supporting acquisitions, growth strategies, refinancings, recapitalizations, and restructurings. LBC has more than $1.25 billion of capital under management and has offices in Philadelphia, Chicago and New York (www.lbccredit.com).
© 2013 PEPD • Private Equity’s Leading News Magazine • 2-20-13