Abry Partners, a Boston-based private equity firm, has announced an agreement to acquire Portfolio Holding from Capital Z Partners, a New York-based private equity firm. The transaction is subject to customary closing conditions, and financial terms were not disclosed.
Headquartered in Lake Forest, California, with additional operations in Dallas, Texas, Portfolio is a leading independent provider of finance and insurance products and services for automotive dealers nationwide. Its offerings include vehicle service contracts, GAP insurance, and a range of ancillary protection products. The company is also known for its expertise in managing Affiliated Reinsurance Companies for dealership owners and for administering warranty programs in other markets.
The Portfolio’s existing management team will remain in place following the transaction and will retain a significant equity ownership stake in the company. The partnership with Abry represents Portfolio’s third and largest private equity investment since 2012, positioning the company for its next stage of expansion.
Houlihan Lokey served as the exclusive financial advisor to Portfolio, providing assistance in structuring and negotiating the transaction.
Founded in 1989, Abry Partners is among North America’s most experienced sector-focused private equity firms. The firm has completed more than $82 billion in leveraged transactions and equity placements and currently manages over $5 billion in active capital.
KEY QUOTES:
“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. 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 Griggs, President and CEO of Portfolio
“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.”
Brent Stone, Senior Partner at Abry Partners
“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.”
Brad Cooper, Managing Partner of Capital Z Partners
