Capital Automotive Financial has launched a new company to provide long-term equity capital solutions to dealers, chief operating officers and general managers in the retail automotive industry.

CAF is led by Richard Kotzen and Capital Automotive Real Estate Services (CARS), anchored by an investment from Two Sigma Private Investments (TSPI).

Kotzen will be president and chief executive officer of the new company.

CAF’s flexible capital base will provide its dealer partners with financing structures, either in minority or majority positions, that over time lead to full ownership of their retail dealership platforms. CAF offers industry expertise and operational capabilities that will help dealers maximize profitability and growth potential.

“CAF is the one-stop-shop for equity, debt and real estate financing solutions that dealers have been waiting for,” said Kotzen. “Our deep experience, access to capital and best-in-class technology platform position us to anticipate and effectively address the evolving needs of the retail automotive industry and help our dealer partners grow.”

Kotzen was previously a partner at accounting and consulting firm Crowe Horwath LLP, where he helped lead the firm’s Retail Dealerships Group. With more than 35 years of experience in buy/sell transaction structuring and profit enhancement consulting in the retail automotive industry, he has been a longtime advisor to clients ranging from single-point dealerships to large dealership groups with sales of up to $3 billion.

Kotzen has worked with major automotive groups to design their acquisition policies and implemented redesigns of key corporate functions such as accounting to deliver group-wide synergies. He also regularly serves as a panelist to leading organizations, including at NADA’s 20 Groups and AICPA’s National Auto Dealership Conference, and has previously developed advanced seminars on topics such as “Automotive Management Consulting” and “Valuation of a Dealership.”

“Our dealer partners are increasingly in need of creative capital partners to assist them in achieving their strategic objectives, to provide growth capital and to address ownership transitions, particularly as technology evolves and disruptors enter the automotive sector and as the industry moves through traditional business cycles,” said Jay Ferriero, president and chief executive officer at Capital Automotive Real Estate Services.

“We believe CAF is in a unique position to help our clients navigate this dynamic marketplace and to provide them with customized capital solutions,” he continued.

“Rick Kotzen and CARS bring a combination of deep industry knowledge, expertise and relationships in automotive real estate and finance to CAF,” said Wray Thorn, chief investment officer of TSPI. “We’re looking forward to partnering with Rick, Jay and the entire CARS team to offer a value-added, flexible capital platform to the retail automotive industry.”