An independent dealership group in business since 1979 just received a majority investment from a value-oriented private equity firm focused on the middle market that manages funds with more than $9 billion of aggregate capital commitments.

On Monday, Crestview Partners announced its investment in AutoLenders, which is headquartered in Berlin, N.J., generating approximately $700 million in annual revenues. 

With Crestview’s investment and support, AutoLenders said that it expects to continue to expand its operations throughout the East Coast as the next step toward becoming a “nationwide leader.” AutoLenders already has seven rooftops in New Jersey and Pennsylvania.

Like many public dealer group and large retailers, AutoLenders utilizes an omnichannel platform for buying and selling, allowing its customers to choose between or combine online and in-store shopping experiences. Not only does AutoLenders book leases with super-prime customers, the company said it often retails those off-lease units while leveraging other inventory acquisition options without solely depending on auctions.

“Our strategy has always been for AutoLenders to provide market-leading service and innovative products to our customers,” AutoLenders founder and chief executive officer Mike Wimmer said in a news release.

“By creating a data-driven and customer-centric business, AutoLenders has been able to expand at multiples of the industry growth rate and become a leading player in our geographies,” Wimmer continued.

“We are now at the point where we want to take advantage of the favorable market trends for the automotive retail industry and continue to grow throughout the East Coast with the ultimate goal of becoming a nationwide leader in the fast-evolving previously owned vehicle market,” Wimmer added.

“We are extremely pleased to be partnering with Crestview on this next step of the company’s journey. They are experienced investors with a history of backing businesses poised for growth beyond their core geographies,” Wimmer went on to say.

Dan Kilpatrick is partner and head of financial services at Crestview. Kilpatrick explained why the firm is teaming with AutoLenders.

“AutoLenders sits at the intersection of many of Crestview’s investments across the automotive landscape, in specialty finance companies and behind businesses with rapid dealership expansion strategies,” Kilpatrick said.

“As we have gotten to know the company, it has become clear that the team at AutoLenders is set to thrive in an increasingly digital and dynamic automotive marketplace.,” Kilpatrick continued. “By leveraging proprietary data analytics, coupled with decades of experience from every vantagepoint of automotive retail, AutoLenders is able to nimbly target the right vehicles to profitably finance, buy and sell.”

Crestview partner and co-president Alex Rose also sees AutoLenders being poised for growth.

“Mike and Brad Wimmer and the rest of the AutoLenders team have built a platform which we believe is uniquely positioned to benefit from several favorable tailwinds across this large and resilient, but still highly fragmented market,” Rose said.

“The used-car industry is ripe for disruption and while there are many exciting business models pursuing this opportunity, AutoLenders has built a differentiated business model with advantages which are exceedingly difficult to replicate, positioning it for long-term success,” Rose went on to say.

AutoLenders was advised by UBS Investment Bank and Mayer Brown LLP.  Crestview was advised by Gibson, Dunn & Crutcher LLP.