Huron Capital, a leading lower-middle-market private equity firm in Detroit, announced that it has sold its interest in the nationwide used car auction and remarketing platform, XLerate Group, to Brightstar Capital Partners. Terms of the transaction were not disclosed.
XLerate has grown rapidly over the past seven years through both add-on acquisitions and organic growth into a larger, more technologically advanced group of national auction sites. Huron Capital states it successfully transformed the business from a traditional on-site wholesale auto auction to a multi-site, multi-platform leader in the industry.
“We had a clear vision when we established XLerate Group with Huron Capital and, together, have achieved many of those goals to establish XLerate as a leader in the used vehicle remarketing industry,” says Cam Hitchcock, CEO of XLerate.
“We see enormous potential for this business and the sector as a whole and are confident we can continue our momentum in the market with Brightstar’s additional support as we transition to a new ownership structure.”
To support rapid growth and scale efficiently, Huron professionalized XLerate’s corporate operations and built a sophisticated business intelligence function at its corporate headquarters. It also implemented standard operating procedures, formalized KPI metrics, and centralized vendor relationships.
“We are honored to have had the opportunity to work with Cam and the XLerate team over the past seven years and look forward to our continued partnership,” says Peter Mogk, senior partner at Huron Capital.
“Our investment strategy with XLerate delivered great value for our investors and built a strong value proposition for key stakeholders, customers and employees alike. We wish them well in the next chapter of their growth under new ownership.”
Through Huron’s investment model, XLerate completed 11 add-on acquisitions, expanding its geographic footprint from six to 12 states in the South, Midwest, and Northeast. It operates 17 auction sites in California, Florida, Georgia, Illinois, Michigan, Ohio, Pennsylvania, South Carolina, Texas, Indiana, Louisiana, and Wisconsin. It also offer in-lane, mobile, and digital auctions in addition to a broad array of ancillary services.
“Our aim will be to solidify XLerate’s leading positions in the markets we serve and continue to expand in this industry through strategic investments in technology and other avenues for growth,” says Hitchcock.