Huron Capital, a leading lower-middle-market private equity firm in Detroit, announced that it has sold its stake in national used car auction and remarketing platform XLerate Group , at Brightstar Capital Partners. Terms of the transaction were not disclosed.
XLerate has grown rapidly over the past seven years through complementary acquisitions and organic growth to become a larger and more technologically advanced group of national auction sites. Huron Capital says it has 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 created XLerate Group with Huron Capital and together we achieved many of these goals to make XLerate a leader in the used vehicle remarketing industry,” said Cam Hitchcock , CEO of XLerate.
“We see tremendous potential for this company and the industry as a whole and are confident that we can continue our market momentum with additional support from Brightstar as we move to a new ownership structure.
To support rapid growth and efficient scale-up, Huron has professionalized XLerate’s corporate operations and implemented a sophisticated business intelligence function at its head office. It has also put in place standard operating procedures, formalized key performance indicators and centralized relations with suppliers.
“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,” said Peter Mogk, senior partner at Huron Capital.
“Our investment strategy with XLerate has brought great value to our investors and built a strong value proposition for key stakeholders, customers and employees. We wish them well in the next chapter of their growth under a new owner. “
Using Huron’s investment model, XLerate has completed 11 complementary 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 offers online, mobile and digital auctions in addition to a wide range of ancillary services.
“Our goal will be to consolidate XLerate’s leadership positions in the markets we serve and to continue to grow in this industry through strategic investments in technology and other growth avenues,” said Hitchcock.