Southfield Capital has closed a dividend recapitalization of portfolio company Vanguard Services. No financial terms were disclosed for the transaction that was done in partnership with Crescent Capital. Finn Dixon & Herling provided legal counsel to Southfield. Based in Fairfield, New Jersey, Vanguard is an independent agent, marketer and administrator of vehicle service contracts.
GREENWICH, Conn., Oct. 30, 2018 /PRNewswire/ — Southfield Capital, a growth-oriented lower middle market private equity firm, announced today that it completed a dividend recapitalization of its portfolio company, Vanguard Dealer Services (“Vanguard” or “the Company”). Vanguard partnered with Crescent Capital (“Crescent”) to provide the financing. Headquartered in Fairfield, NJ, Vanguard is a leading independent agent, marketer, and administrator of vehicle service contracts.
The recapitalization ensures that the Company is appropriately capitalized to execute on its growth plans. The Company will also be distributing a dividend to shareholders.
Andy Cook, Partner at Southfield Capital, commented “Vanguard has experienced tremendous growth over the last couple of years, more than tripling since the time of our investment three years ago. The management team has executed on our initial growth strategy and we are excited to partner with Crescent to capitalize the business for the next stage of growth.”
“Vanguard has grown due to its relentless pursuit of driving dealer, administrator, and OEM profitability,” said Jim Polley, CEO of Vanguard. “We will continue to invest in our systems, processes, and people to ensure that we remain the best-in-class F&I product and training provider in the industry.”
Finn Dixon & Herling provided legal counsel to Southfield Capital.
About Southfield Capital
Southfield Capital is a private equity firm that invests in high-growth, lower middle market companies in the outsourced business services sector. The firm targets companies with $4 – 12 million in EBITDA and partners with management to scale the business through a combination of organic and acquisition growth strategies. For more information, please visit www.southfieldcapital.com.