Franchise Equity Partners, a private investment firm connected to longtime automaker executive Mark LaNeve that launched in November 2021, has made its first foray into car dealerships via a multimillion-dollar deal with a growing dealership group in the Northeast.
New York-based Franchise Equity Partners invested $70 million into Georgica Auto Holdings, which is headed by Jonathan Sobel. The deal closed Oct. 21, said Sobel, Georgica Auto's CEO.
"We will use these funds for strategic acquisitions, things that fit our business model," Sobel told Automotive News. "We presently have one deal pending. I can't go into specifics right now because of confidentiality reasons.
"But we are planning to invest some of these proceeds in one transaction that is presently under contract, and we are looking at other deals as well."
Sobel noted that while a majority of the money will spur acquisition growth, some will be used to improve dealership facilities and the overall customer experience at his existing stores.