Capital Z Acquires Portfolio Group from Frontenac
Lake Forest, CA - Capital Z Partners Management, LLC (“Capital Z”), a New York-based private equity firm, announced in early July that it has acquired Portfolio Group, Inc. (“Portfolio” or the “Company”) from Frontenac Company, LLC (“Frontenac”), a Chicago-based private equity firm. Terms of the transaction were not disclosed.
Based in Lake Forest, CA, and with operations in Dallas, TX, Portfolio is a leading independent provider of finance and insurance products and services to automotive dealers across the country. Its specialty is managing Affiliated Reinsurance Companies for dealership owners. Portfolio develops, distributes and administers auto dealer extended warranty programs across a full-service product offering including vehicle service contracts, Guaranteed Asset Protection and ancillary products. Management will retain its current roles in day-to-day operations and retain 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 President and Chief Executive Officer Brent Griggs. “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.”
Robert Spass, Managing Partner of Capital Z, said, “We know the space well and believe Portfolio is one of the best platforms in the VSC industry. 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, said, “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.”
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