Brightstar Capital Partners completed the acquisition of XLerate Group, a nationwide car auction and remarketing facilitation company. Brightstar made the investment in partnership with XLerate’s senior management team.
Brightstar Capital Partners (“Brightstar”), a private equity firm focused on partnering with families, founders, entrepreneurs and management teams, announced today that it has completed its acquisition of XLerate Group (“XLerate” or the “Company”), a leading nationwide car auction and remarketing facilitation company, in partnership with the Company’s senior management team. The signing of the transaction’s definitive agreement was previously announced on September 2.
Originally founded in 2010 and based in Carmel, IN, XLerate is a full-service used-car auction services provider that facilitates the wholesale remarketing of used vehicles for B2B customers, delivering a critical liquidity function for the used car sales ecosystem. XLerate operates fixed site and mobile auctions sites across 13 states, as well as on digital platforms.
“The XLerate team’s industry knowledge and operational expertise impressed us as we spent time at their auction sites around the country,” said Andrew Weinberg, Founder & CEO at Brightstar. “This acquisition represents a phenomenal opportunity for XLerate’s customers and our investors alike, as we pool together our collective knowledge and resources to add value and grow this business.”
“Especially with Brightstar’s support, we see enormous potential for this business and the sector as a whole,” said Cam Hitchcock, CEO of XLerate. “Our aim will be to solidify XLerate’s leading market positions, and further scale in this industry through strategic investments in technology and other avenues for growth.”
“XLerate provides liquidity to the dynamic used car industry across a number of geographic regions,” said Gary Hokkanen, Partner at Brightstar. “Executing on our “Us & Us” model of investing, we are excited to roll up our sleeves and work with XLerate’s team as the Company continues to offer innovative services to dealers and institutional customers.”
Kirkland & Ellis LLP acted as legal advisor to Brightstar.
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 for the used car sales ecosystem. Based in Carmel, IN, XLerate facilitates the selling and buying of used vehicles at physical auction sites across 13 states as well as on digital platforms. The Company also has a full-service dealer floorplan affiliate, XL Funding. 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 middle market private equity firm focused on partnering with exceptional families, founders, entrepreneurs and management teams where the firm can drive value creation. Brightstar is led by a seasoned team of investors with expansive relationship networks and significant operating experience across numerous sectors. Brightstar employs an operationally intensive “Us & Us” model to investing, respecting the accomplishments, culture and vision of our portfolio company leadership while helping on the ground and in the boardroom. For more information, please visit https://brightstarcp.com.