Altamont funds Kinetic Advantage

Altamont Capital Partners has made an investment in Kinetic Advantage, an auto floorplan financing company.

Altamont Capital Partners has made an investment in Kinetic Advantage, an auto floorplan financing company. No financial terms were disclosed. Stephens Inc. acted as financial advisor to Kinetic and Altamont on the deal.

PRESS RELEASE

PALO ALTO, Calif. and CARMEL, Ind., Jan. 18, 2021 /PRNewswire/ — Altamont Capital Partners (“Altamont”) today announced its investment in a newly-formed auto floorplan financing company, Kinetic Advantage (“Kinetic” or the “Company”).

Kinetic is led by CEO Marty McFarland, who co-founded Dealer Services Corporation (“DSC”) in 2005. Mr. McFarland is joined by industry veterans Randy Dohse, COO, and Chris Brady, CIO, both of whom worked with Mr. McFarland at DSC. Rounding out the highly experienced leadership team are Joe Keadle, SVP of Operations, and Joe O’Brien, SVP of Sales and Marketing.

The Company was formed with the vision to provide a better floorplan experience to independent auto dealers by streamlining the customer experience, increasing flexibility and offering increased transparency around fees, all enabled by a market-leading technology platform. Launched in 21 markets to date, Kinetic will operate nationally with relationships across auction platforms. In total, the Company has secured more than $225 million of initial debt and equity funding to support its expansion.

Mr. McFarland said, “Having operated in the auto sector our entire careers, my team and I see a real need for a new provider that can serve as a truly platform agnostic floorplan financing partner to independent dealers. We recognize the pain points present in the industry – which have only been exacerbated by the pandemic – and are optimistic that our entry into the market will provide a welcome solution to our new dealer and auction partners.”

Keoni Schwartz, Managing Director of Altamont, commented, “We were impressed by the vision that Marty and his team discussed in our initial dialogue and are thrilled to partner with Kinetic. We have deep familiarity with floorplan financing through our prior investment activity and current portfolio, and recognize the clear market need for a true partner to dealers that will provide transparent pricing, a hassle-free collateral audit process and technology solutions that deliver a more streamlined experience.”

Sam Gaynor, Managing Director of Altamont, added, “Altamont has a track record of backing best-in-class operators in financial services to address market needs, and that is the case with Kinetic. We have committed significant equity capital to the business to support its ambitious loan growth forecast and look forward to leveraging our breadth of operational resources to ensure the success of its national rollout.”

Terms of the transaction were not disclosed. Stephens Inc. acted as the exclusive financial advisor and Ropes & Gray and Morrison & Foerster served as legal counsel to the Company and Altamont. Financing for the transaction was provided by MidCap Financial.

About Altamont Capital Partners
Altamont Capital Partners is a private investment firm based in the San Francisco Bay Area with more than $2.75 billion of assets under management. Altamont is focused on investing in middle market businesses where it can partner with leading management teams to help its portfolio companies reach their full potential. The firm’s principals have significant experience building business success stories across a range of industries, including financial services, healthcare, consumer/retail, industrials, and business services.

About Kinetic Advantage
Kinetic Advantage is a dynamic floorplan company led by trusted industry veterans. Our core focus is helping our independent dealer partners and team members succeed while providing them with an exceptional and engaging user experience. We are committed to forging strong partnerships through transparent communication and simple, innovative solutions. We provide our partners and team members with the support and tools they need to grow throughout their journey.Altamont Capital Partners has made an investment in Kinetic Advantage, an auto floorplan financing company.