LAKE FOREST, Calif. — Abry Partners, a Boston-based private equity firm, announced that it has agreed to acquire Portfolio Holding Inc. from Capital Z Partners LP, a New York-based private equity firm. Terms of the transaction, which is subject to normal and customary closing conditions, were not disclosed.
Based in Lake Forest, Calif., with operations in Dallas, Portfolio is an independent provider of F&I products and services to automotive dealers across the country, including vehicle service contracts, GAP insurance, and ancillary products.
The company’s specialty is managing affiliated reinsurance companies for dealership owners. Portfolio also administers warranty programs for other markets. All of Portfolio’s current management team will remain in their roles leading the company and will retain significant equity ownership, all according to the announcement.
“To accommodate our tremendous growth, Abry will be the third and largest private equity investor in the company since 2012. They are committed to helping us attain yet another record level of growth,” said Brent Griggs, president and CEO of Portfolio. “Abry Partners has a strong background in the financial services sector, and we have selected them as the next ideal partner for us. The Portfolio team is focused on expanding our footprint nationally in the automotive space and we have begun to leverage our reinsurance and administrative expertise in other markets as we pursue new opportunities to build the business.”
Brent Stone, a senior partner at Abry, said, “We have been impressed by Portfolio’s growth with consistent profitability over the years in a very competitive industry, as well as the quality of their home office and sales leadership in the field. The Portfolio team is a perfect example of the kind of company we invest in — motivated owners and executives who want to grow. We look forward to providing them the resources to help them succeed, while providing long-term value for all stakeholders in this investment.”