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PRIVATE EQUITY INVESTING
In Automotive-Related Companies
September 26, 2019 @ 8:00 am - 5:00 pm
As New Technologies Innovate
The Auto Industry,
PE Investors Shift Gears
Private Equity Investing in Automotive-Related Companies
Over the next couple of years, car and truck makers are planning to introduce dozens of models of new electric vehicles. They’ll include numerous exciting features, e.g., video cameras that will replace side-view mirrors, and front seats that swivel 180 degrees so passengers riding in front can face rear-seated passengers while the vehicle is in autonomous driving mode.
As the auto industry prepares for dramatic changes in the way mobility occurs, and as vehicles are being built, private equity investors are going to discover more and more opportunities for investment.
Here are three major trends investors will be capitalizing on —
Electric autonomous cars & trucks – As the automakers launch new and autonomous vehicles, and as they add more and more IT, telematics, and electronics, middle-market investors are focusing on suppliers of products and services that are aligned with these trends.
Examples include recent sales to Michelin by Summit Partners of Masternaut, a SaaS telematics platform; and Harbour Group’s add-on acquisition of EVoCharge, a Los Angeles-based maker of electric vehicle charging stations.
Opportunities for suppliers – Companies that build cars and trucks are also striving to reduce costs, improve flexibility, and quicken time-to-market. Car manufacturers and OEMs will be looking for partners and for buyers to acquire current operations. Well-positioned suppliers will be able adapt to today’s fast-changing market, scale through acquisitions, and emerge as winners.
Ride sharing – Americans aren’t buying as many cars as they used to, relying increasingly on sharing vehicles, a trend favored by millennials. Indeed, global auto demand declined in 2018 for the first time since 2009, and since 2015 U.S. sales have been flat.
What’s more, since shared vehicles endure lots more wear and tear, they require more maintenance. That’s why savvy investors are scooping up companies that replace parts that wear out, like tires and wipers, and that provide services like quick lube and car washes. Hence Wynnchurch Capital’s purchase of Team Car Care, one of the largest franchisors in the quick lube business, and Golden Gate Capital’s acquisition of giant retailer Mavis Discount Tire.
Stellex Capital Management
Thursday, September 26, 2019
8:00am – 5:00pm
Midtown Manhattan, NY
Register now to gain valuable insights as 20-plus speakers assess the outlook
for the automotive sector at this Capital Roundtable full-day conference, taking place on Thursday, September 26, in Midtown New York City.
Three Key Reasons Why You Should Join Us
1. Hear which products and services are most attractive and well-aligned for growth in this market.
2. Learn why transaction multiples for the asset intensive auto industry are on average lower than the rest of the PE world — and how to take advantage of that at entry.
3. Hear how Washington is influencing the transformation of the auto industry.
- What are the criteria PE investors must heed when evaluating new transactions?
- What areas of the auto industries should investors spin off as the transition is underway?
- How soon will traditional rental car companies become a thing of the past?
- What does consolidation in the auto world mean for private equity deals?
- How is the slowdown in car sales in China, the biggest manufacturer in the world, impacting deal making in the U.S.?
- What are best practices for growing an auto-related company and readying it for sale?
- Why are strong management teams more important than ever when it comes to auto-related companies catering to car manufacturers and OEMs?
Recent Middle Market Deals in the Automotive Sector
- Clearlake Capital’s portfolio company Wheel Pros, which designs and markets aftermarket wheels, acquired MHT Luxury Wheels.
- KKR’s Calsonic Kansei, an auto part supplier, purchased Magneti Marelli from Fiat Chrysler for about $7 billion.
- Thoma Bravo bought Autodata Solutions, a provider of data and software to the auto industry, from Internet Brands, which is backed by KKR.
- Brookfield Business Partners and Caisse de Depot et Placement du Quebec purchased the auto battery arm of Johnson Controls for $13.2 billion.
- LS Group and KKR invested in LS Automotive, an electrical auto part maker.
- TPG and Leonard Green & Partners sold their stakes in CCC Information Services, an SaaS provider for the automotive, insurance, and collision repair sectors, to Advent International.
- Kian Capital acquired Eastwood Company, an e-commerce provider of branded professional tools, equipment, and supplies to the auto enthusiast market.
Michael Stewart is a managing partner at Stellex Capital Management. Previously he was a partner at The Carlyle Group and a managing director and co-head of Carlyle Strategic Partners, a distressed and special situations fund. He was one of the original principals at Sunrise Capital Partners, a growth capital fund. Before that, he spent eight years at Houlihan Lokey in its financial restructuring group.
Mr. Stewart is a director of AFG Holdings, Custom Glass Parent, Dominion Hospitality Topco, Fenix Parent, and Grammer Investment Holdings. He previously served as director of Famous Brands International (Mrs. Fields), Permian Tank & Manufacturing, Sterling LLC, Diversified Machine, Metaldyne, Stellex Aerostructures, Airwalk International, Day Runner, NEXIQ Technologies, Klenk Holz, and Riverside Millwork Company.
He earned a B.S. in finance and entrepreneurial studies at the University of Southern California.
This Capital Roundtable conference in midtown, New York City, is all-business, all-targeted, all-designed to be a completely focused day of practical information and revealing insights about automated-related companies. You’ll gain valuable insights from —
- Three informative panel discussions
- Two revealing keynote presentations
- Real-world perspectives from company investors
- Industry outlooks from noted sector experts
- War stories and lessons learned from experienced hands
- Michael Stewart, Managing Partner, Stellex Capital Management
- Burt Alimansky, Chairman & CEO, The Capital Roundtable
Preliminary Speaker List
- Andrew P. Arton, Senior Vice President, First Midwest Bank
- Gary S. Cohen, Chief Executive Officer, Qualitor Inc.
- Joseph H. Conner, Managing Dir.–Transportation & Logistics Group, Harris Williams & Co.
- Robert B. Field, Director, Sawaya Partners LLC
- Daron Gifford, Partner, Plante Moran
- Thomas R. Groh, Partner–Business Development, Altus Capital Partners
- Ramzi Y. Hermiz, President and CEO, Shiloh Industries
- Andrew Joy, Principal, Hidden Harbor Capital Partners
- Shankar Kiru, Operating Advisor, Stellex Capital Management LP
- Beth S. Michelson, Senior Managing Director, Cartesian Capital Group LLC
- Lee Mlotek, Director, Monomoy Capital Partners
- Ted D. Morgan, Principal, Plante Moran
- Anthony Rimas, Managing Partner, Fraser McCombs Capital
- Jonathan Saltzman, Managing Director, Torque Capital Group LLC
- Darrell Smith, Vice President, Michigan Capital Advisors
- Joseph Sparacino, Managing Director, BB&T Capital Markets
- Bruce Swift, Chief Executive Officer, Paragon Metals
7:30am – 8:30am
Networking & Registration & Breakfast
8:30am – 9:00am
Welcoming Remarks & Audience Self-Introductions
9:00am – 9:30am
Conference Chair’s Introduction — Michael Stewart, Stellex Capital Management
9:30am – 10:15am
Morning Keynote —
The Future of Mobility: Reinventing the Auto Industry — Daron Gifford, Plante Moran
10:15am – 11:00am
Networking & Coffee
11:00am – 12:00pm
First Panel —
OEM & Aftermarket Technologies — Changes Investors Are Using to Rev Up Their Portfolios
12:00pm – 1:00pm
Networking & Luncheon
1:00pm – 1:45pm
Early Afternoon Conversation —
Conversation Among Portfolio Company Executives
1:45pm – 2:45pm
Second Panel —
Parts & Product Suppliers — Where Aftermarket Investors Can Find the Most Value
2:45pm – 3:00pm
Networking & Dessert
3:00pm – 3:45pm
Afternoon Conversation —
Predicting Future Risks — Gauging the Impact of Tariffs, Emissions, Regulations
3:45pm – 4:30pm
Third Panel —
Finding EBITDA on the Shop Floor — Short Term Strategies That Yield Long Term Value
Networking & Adjournment
Space at this conference is limited, so register as soon as possible to assure yourself a seat. To avoid disappointment, please contact Chris Agar today to confirm your attendance at 212-832-7300 ext. 0 or firstname.lastname@example.org.
Please note that Capital Roundtable limits the number of registrants from a single firm to three.
Best Rate – Early Registration
Save $300 off the standard fee of $1,495 when you register by Friday, August 8. Just $1,195.
Save $200 of the standard fee! Register by Friday, August 30, and the fee for the conference is $1,295.
$1,495 increasing to $1,595 day of conference, space permitting.
$1095 each until Friday, August 30, when you register two or more people to attend from the same company. This rate increases to $1295 each after Friday, August 30.
You can pay by credit card (using the links above or below) or by check. Mail your check and business card to: New York Business Roundtable Inc., 747 Third Avenue, Suite 200, New York, NY 10017.
Can’t attend but want to hear the program? You can buy the audio package along with the handounts.
This event is sponsored by:
Altus Capital Partners
Alvarez & Marsal
Brightwood Capital Advisors
Capitala Investment Advisors
Capstone Financial Group
Greenbriar Equity Group
Heidrick & Struggles
J.P. Morgan Chase
Monomoy Capital Partners
Norton Rose Fulbright
ONCAP Management Partners
One Rock Capital Partners
RBC Capital Markets
Robert W. Baird
Silver Point Capital
Skadden Arps Slate Meagher & Flom
Stellex Capital Management
Stifel Financial Corp.
Stout Risius Ross
The Firmament Group
Torque Capital Group
Turnspire Capital Partners
UBS Investment Bank
Uniroyal Engineered Products
VRC | Valuation Research Corporation
Wall Street Journal
Winston & Strawn