Southfield Capital Invests in Vanguard Dealer Services in Partnership with Management
August 20, 2015
GREENWICH, CT - Southfield Capital, a leading lower middle market private equity
firm, announced today that it has partnered with management, led by CEO Jim Polley,
along with Ed Reitz and Mike Seergy, to invest in Vanguard Dealer Services (“Vanguard”).
Vanguard is a premier agent and administrator of finance and insurance (“F&I”) products
and services to franchised automobile dealers nationwide. Vanguard’s senior management
will continue in their current operating roles and will maintain a shareholding
in the company. Additional terms of the transaction were not disclosed.
Headquartered in Fairfield, NJ, Vanguard offers a full suite of proprietary and
third party auto extended warranty (vehicle service contracts) and ancillary products
such as tire protection, key replacement, dent repair and pre-paid maintenance.
The Company also offers F&I consulting and reinsurance services focused on enhancing
dealership profitability. At the core of Vanguard’s value proposition is its ability
to increase dealer profitability and customer retention. The Company achieves this
by leveraging its broad product offering and establishing best practice systems
and processes, including F&I training, automotive management training, compensation
plan development, dealer owned reinsurance, dealer incentive management, sales strategy
and proficiency analysis, compliance review, and F&I specialists staffing.
“The Vanguard team is very excited to announce our partnership with Southfield Capital.”
said Jim Polley, co-founder and CEO of Vanguard. “We have ambitious plans to grow
Vanguard into the nation’s preeminent provider of F&I products and services through
a combination of acquisitions and the introduction of new products and services.
We needed a partner that has experience executing roll-up strategies and the operational
expertise to ensure that we scale the business appropriately as we grow. Southfield’s
excellent track record with companies similar to Vanguard gave us confidence that
they are the right partner for us. We are excited to implement our growth plans
and develop a truly great company.”
Southfield Partner, Andy Cook, commented, “We are thrilled to announce our investment
in Vanguard and look forward to our partnership with the Vanguard team. Jim Polley
and his management team have developed a fantastic business which is now positioned
for accelerated growth. Vanguard is a mission critical vendor to automotive dealers
that increasingly rely on Vanguard’s products and services to drive profitability.
Vanguard represents a compelling platform investment in a large and highly fragmented
East West Bank provided the senior debt financing, and Fidus Investment Corporation
provided the subordinated debt financing. Finn Dixon & Herling provided legal counsel
to Southfield Capital. Woodbridge International acted as financial advisor to Vanguard
and its shareholders.
About Southfield Capital
Southfield Capital is a private equity firm that invests in growth oriented, lower
middle market companies in the following industry sectors: outsourced business services,
specialty finance, and value added distribution. The firm targets companies with
$4 - 12 million in EBITDA and partners with management to scale the business through
a combination of organic and acquisition growth strategies. For more information,
please visit www.southfieldcapital.com
Andy Cook, Partner