Abry Partners has agreed to acquire Lake Forest, California-based Portfolio Holding Inc, a provider of finance and insurance products and services to automotive dealers. The seller was Capital Z. No financial terms were disclosed.
LAKE FOREST, CA, August 19, 2019 – Abry Partners (“Abry”), a Boston-based private equity firm, announced that it has agreed to acquire Portfolio Holding, Inc. (“Portfolio” or the “Company”) from Capital Z Partners, LP (“Capital Z”), a New York-based private equity firm. The transaction is subject to normal and customary closing conditions. Terms of the transaction were not disclosed.
Based in Lake Forest, CA, with operations in Dallas, TX, Portfolio is a leading independent provider of finance and insurance products and services to automotive dealers across the country, including vehicle service contracts, GAP insurance, and ancillary products. Its specialty is managing Affiliated Reinsurance Companies for dealership owners. Portfolio also administers warranty programs for other markets. All of Portfolio’s current management team will remain in their roles leading the Company and will retain significant equity ownership.
“To accommodate our tremendous growth, Abry will be the third and largest private equity investor in the company since 2012. They are committed to helping us attain yet another record level of growth,” said Brent Griggs, President and CEO of Portfolio. “Abry Partners has a strong background in the financial services sector, and we have selected them as the next ideal partner for us. The Portfolio team is focused on expanding our footprint nationally in the automotive space and we have begun to leverage our reinsurance and administrative expertise in other markets as we pursue new opportunities to build the business.”
Brent Stone, a senior Partner at Abry, said, “We have been impressed by Portfolio’s growth with consistent profitability over the years in a very competitive industry, as well as the quality of their home office and sales leadership in the field. The Portfolio team is a perfect example of the kind of company we invest in – motivated owners and executives who want to grow. We look forward to providing them the resources to help them succeed, while providing long-term value for all stakeholders in this investment.”
Brad Cooper, Managing Partner of Capital Z, said, “We could not be more pleased with the outcome of our investment in Portfolio. They exceeded our expectations and were great partners to work with. Abry is buying a terrific company and will be the perfect partner for management to continue the Company’s growth and success.”
Houlihan Lokey served as the exclusive financial advisor to Portfolio and assisted in structuring and negotiating the transaction.
About Abry Partners
Abry is one of the most experienced and successful sector-focused private equity investment firms in North America. Since their founding in 1989, the firm has completed over $82.0 billion of leveraged transactions and other private equity or preferred equity placements. Currently, the firm manages over $5.0 billion of capital across their active funds. For more information on ABRY, please visit www.Abry.com.
About Capital Z Partners
Capital Z is a leading global private equity firm focused exclusively on the financial services industry. Together with its predecessor funds, Capital Z has invested approximately $3 billion in over 40 transactions since 1990. For more information, please visit www.capitalz.com.
Founded in 1990, Portfolio’s primary business is turnkey reinsurance management of vehicle service contracts, warranties and other F&I products sold in the automotive dealership. Its top executives have specialized in reinsurance since the origination of the concept over 30 years ago. Portfolio is marketed to dealers through a nationwide network of professional independent agents and reinsurance specialists. The company also administers reinsured and non-reinsured warranty programs for other markets. Portfolio is based in Lake Forest, CA and Dallas, TX. More can be learned about Portfolio at www.PortfolioReinsurance.com.