JACKSON — Michigan Capital Partners will bring more than $147 million in available funding to Tier 2 and Tier 3 automotive and transportation suppliers with a presence in Michigan.
A collaboration of public and private funding, the newly-formed private equity firm will be capitalized by a number of private investors from across Michigan, and up to $22.5 million from the Michigan Strategic Fund.
Michigan Capital Partners will focus on companies with $20-200 million in revenue across five pillars of the transportation industry: machining, forming, tool and die making, supply chain support, and technology. Companies considered for funding will be headquartered or have operations in Michigan.
“There are more than 1,700 Tier 2 and 3 suppliers in Michigan, and many of them are well-run organizations in need of a little investment and operational expertise,” says Charles G. McClure, former CEO of several major automotive suppliers. “Our team’s background in the auto industry allows us to provide these companies with the boost they need to compete and grow, not only with capital, but with strategic support to help drive operational improvements, and ultimately, economic growth in the State.”
McClure and Russell Youngdahl Jr., CEO of Grow Michigan LLC, are leading Michigan Capital Partners team that will provide operational and financial strategic counsel to each of the platform companies in addition to funding.
“Through our connections with investors across the State, the banking community and Grow Michigan, we are able to build a strong investment committee and secure very efficient capital structures for our platform companies,” says Youngdahl. “By offering a diverse range of investment types, we ensure each company we work with will have the tools to create a sustainable business.”
Michigan Capital Partners expects to maintain a long-term investment horizon of seven to ten-years with each of its platform companies.
“The importance of the automotive and transportation supply chain to the Michigan and US economy cannot be understated,” says Michael Finney, president and CEO of the Michigan Economic Development Corp. “In supporting and accelerating these small businesses, which are the foundation of the auto industry globally, we are both ensuring Michigan’s dominance in the sector and keeping these growing companies globally competitive, and solidly rooted in Michigan.”