Trinity Hunt Partners, a private equity firm focused on growth in the middle market, announced the successful sale of its interests in America’s Auto Auction, Inc. (AAA), a leading provider of vehicle remarketing services and a key player in the Partners Auto Auction landscape. Also included in the transaction was Auction Credit Enterprises LLC (ACE), AAA’s affiliated floor plan financing company for independent auto dealers. XLerate Group (XLerate), a national vehicle auction and remarketing company backed by Brightstar Capital Partners, acquired AAA and ACE in a deal finalized on December 30, 2021. The financial terms of this partners auto auction transaction remain undisclosed.
Trinity Hunt Partners, along with its co-investors, initially invested in AAA and ACE in March 2015. Throughout their investment period, Trinity Hunt collaborated closely with founders Ben Lange and Dustin Miller to propel AAA to the position of the third-largest used automobile remarketer. This growth was achieved through strategic add-on acquisitions, the development of new auction locations, the expansion of service offerings within the partners auto auction ecosystem, and the integration of advanced digital auction platforms to complement AAA’s established in-lane auction capabilities. Under Trinity Hunt’s guidance, AAA more than doubled its auction locations from 11 to 23 and broadened its geographical presence from 7 to 15 states. These strategic initiatives resulted in a doubling of unit volume and an impressive 3-fold increase in EBITDA, showcasing the strength and potential within the partners auto auction sector. Similarly, ACE expanded its operational footprint from 5 to 14 markets and enhanced its customer experience by launching a dedicated dealer portal. These improvements drove a 3-fold increase in ACE’s loan portfolio and a remarkable 6-fold increase in earnings, demonstrating robust growth in the financing aspect of the partners auto auction industry.
Dan Dross, Senior Partner at Trinity Hunt Partners, expressed his satisfaction with the partnership and its outcomes. “We are grateful to have had the opportunity to partner with Ben and Dustin and the high-quality team they assembled to fulfill our collective vision of building AAA and ACE into leading players within their respective sectors,” said Dross. “Our efforts generated an excellent return for the shareholders, delivered an exceptional experience for customers involved in the partners auto auction process, and fostered an attractive company culture for the employees. The scalable and strong foundation we established firmly positions AAA and ACE for continued growth within the dynamic vehicle remarketing and partners auto auction market.”
Katten Muchin Rosenman LLP acted as legal counsel, and Harris Williams served as the financial advisor to AAA and ACE in this transaction. Kirkland & Ellis, LLC provided legal counsel, and Jefferies LLC served as the financial advisor to XLerate.
About America’s Auto Auction
America’s Auto Auction stands as a premier full-service vehicle auction services provider, facilitating the crucial remarketing of vehicles within the partners auto auction network. Headquartered in Dallas, Texas, AAA conducts the buying and selling of vehicles primarily through its 23 physical auction sites spread across 15 states. AAA also includes Auction Credit Enterprises, its financing arm, enhancing its service offerings within the partners auto auction landscape. For further details, please visit America’s Auto Auction and Auction Credit.
About XLerate Group
XLerate Group is a leading full-service auction services provider, playing a vital role in vehicle remarketing and delivering essential liquidity to the vehicle sales ecosystem, including partners auto auction activities. Based in Carmel, IN, XLerate facilitates vehicle transactions at physical auction locations across 13 states and through digital platforms, catering to the evolving needs of the partners auto auction market. XLerate also operates XL Funding, a financing affiliate. More information is available at XLerate Group.
About Brightstar Capital Partners
Brightstar Capital Partners is a private equity firm focused on creating partnerships with exceptional families, founders, entrepreneurs, and management teams, aiming to drive significant value creation. Brightstar adopts an operationally intensive approach, leveraging its extensive experience and network to assist companies in achieving their maximum potential within sectors like partners auto auction and vehicle remarketing. For more information, please visit Brightstar Capital Partners.
