Brightstar Capital Partners, a private equity firm focused on partnering with families, founders, entrepreneurs and management teams, announced Sept. 2 that it has acquired a majority stake in XLerate Group, a leading nationwide car auction and remarketing facilitation company, according to a news release.
XLerate's senior management team and current owner Huron Capital both will retain minority equity stakes in the business. Terms of the private transaction were not disclosed.
XLerate is a full-service used-car auction services provider that facilitates the wholesale remarketing of used vehicles for B2B customers, delivering critical liquidity to enable the used car sales ecosystem. Based in Carmel, Ind., XLerate enables the selling and buying of used vehicles at fixed site and mobile auctions sites across 11 states, as well as on digital platforms. The company’s daily mission is simple and straightforward: provide the highest quality service and operational execution for dealers and institutional customers.
Andrew Weinberg, founder and CEO at Brightstar, said the partnership with XLerate CEO Cam Hitchcock and the "experienced and talented team will fuel the company’s growth in this fragmented industry.”
"Combining management’s unparalleled knowledge of the auto industry with our resources and network of relationships, we aim to add value for XLerate’s customers and employees as well as our investors,” Weinberg said in the release.
Hitcock said Brightstar's "relationship-driven approach is perfectly suited for the auction industry, and Brightstar’s prior experience in a related vertical and operational acumen will facilitate new opportunities for us.”
“This is a time of great opportunity for XLerate and its customers,” said Gary Hokkanen, partner at Brightstar. “The automotive remarketing sector is poised for tremendous change due to an increased use of technology, evolving vehicle mix and changing expectations from both buyers and sellers."
Kirkland & Ellis LLP is acting as legal advisor to Brightstar and Honigman LLP is acting as legal advisor to XLerate and Huron Capital.
Originally posted on Vehicle Remarketing