LAKE FOREST, Calif. — Capital Z Partners Management LLC, a New York-based private equity firm, has acquired Portfolio Group Inc. from Frontenac Co. LLC, a Chicago-based private equity firm. Terms of the transaction were not disclosed.
Based in Lake Forest, Calif., with operations in Dallas, Portfolio is an independent provider of automotive F&I products and services to U.S. dealers and specializes in managing affiliated reinsurance companies for dealership owners. Management is expected to retain current roles in day-to-day operations and significant ownership.
“We enjoyed strong growth during Frontenac’s ownership as we’ve executed a number of key internal growth initiatives that expanded the Company’s geographic footprint and dealership network, in addition to developing the support functions necessary to facilitate continued expansion,” said Brent Griggs, president and CEO of Portfolio. “In Capital Z, we have found a future partner who will continue to support our strong growth, knows the insurance markets and shares our strategic vision.”
“We know the space well and believe Portfolio is one of the best platforms in the VSC industry,” said Robert Spass, managing partner of Capital Z. “The strength of the management team, their vision for the future and unique business model make Portfolio well positioned to take advantage of current industry trends. Capital Z is pleased to have reached this agreement and we look forward to partnering with management to take advantage of the significant growth opportunities available.”
Ron Kuehl, managing director of Frontenac, added, “Partnering with founder-owned businesses is a core pillar of our strategy and we are delighted in the successful partnership we forged with Brent and Portfolio’s founder, Steve Burke. We are confident that management and their new partner Capital Z will continue the strong growth trajectory of the company.”