New York and Carmel, IN , September 2, 2021 – Brightstar Capital Partners (“Brightstar”), a private equity firm focused on partnering with families, founders, entrepreneurs and management teams, announced today that it has reached a definitive agreement to acquire a majority stake in XLerate Group (“XLerate” or the “Company”), a leading nationwide car auction and remarketing facilitation company. The Company’s senior management team, as well as current owner Huron Capital, both will retain minority equity stakes in the business. Terms of the private transaction were not disclosed.
XLerate is a leading, full-service, used-car auction services provider that facilitates the wholesale remarketing of used vehicles for B2B customers, delivering a critical liquidity function to enable the used car sales ecosystem. Based in Carmel, IN, XLerate facilitates 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.
“We’re excited to partner with CEO Cam Hitchcock and Xlerate’s experienced and talented team to fuel the Company’s growth in this fragmented industry,” said Andrew Weinberg, Founder and CEO at Brightstar. “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.”
“We are thrilled to join forces with Brightstar to scale XLerate even further,” said Mr. Hitchcock. “Their team’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. We are enthusiastic about the opportunity to enhance Xlerate’s position and its customer experience through our investment and partnership with the XLerate team.”
“We are proud to have played a part in XLerate’s success to this point,” said Peter Mogk, Senior Partner at Huron Capital. “Huron Capital looks forward to partnering with Brightstar and XLerate’s management team as Xlerate enters into the next phase of its growth as an innovative leader in the industry.”
Kirkland & Ellis LLP is acting as legal advisor to Brightstar and Honigman LLP is acting as legal advisor to XLerate and Huron Capital.
About XLerate Group
XLerate Group is a leading full-service used-car auction services provider that facilitates the wholesale remarketing of used vehicles for B2B customers, delivering a critical liquidity function to enable the used car sales ecosystem. Based in Carmel, IN, XLerate facilitates the selling and buying of used vehicles at physical auction sites across 11 states as well as on digital platforms. The Company also has a full-service dealer floorplan affiliate, XLFunding. The company’s daily mission is simple and straightforward: provide the highest quality service and operational execution for dealers and institutional customers. For more information, please visit https://www.xlerategroup.com.
About Brightstar Capital Partners
Brightstar Capital Partners is a private equity firm focused on partnering with exceptional families, founders, entrepreneurs and management teams where the firm is ideally positioned to drive value creation. Brightstar employs an operationally intensive approach that leverages its extensive experience and relationship network to help companies reach their full potential. For more information, please visit https://brightstarcp.com.
About Huron Capital
Founded in Detroit in 1999, Huron Capital is an operationally focused private equity platform with a long history of growing lower middle-market companies through its proprietary ExecFactor® buy-and-build investment model. Huron prefers complex situations where we can help companies reach their full potential by combining its operational approach, substantial capital base, and transaction experience with seasoned operating executives. For more information, please visit: http://www.huroncapital.com.