The Dave Cantin Group has announced that it received a significant minority investment from Kaltroco, a private investment company backed by the family of Steve Koltes, a co-founder of CVC Capital Partners. Kaltroco was founded in 1994 as a vehicle to invest in private companies and is committed to supporting the long-term growth of high-quality middle-market businesses. Financial terms were not disclosed.
DCG annually advises on over $1 billion in gross transaction volume and has advised on hundreds of transactions since its founding in 2017. Kaltroco’s investment will support the next stage of DCG’s growth and development, as the company builds upon its leadership position in the automotive advisory space. Plans for strategic investment include continued expansion into adjacent industry verticals such as motorcycle (Harley-Davidson), recreational vehicle (RV), powersports and heavy truck, further growth of the company’s geographic footprint, and the launch of enhanced advisory offerings.
“Our partnership with Kaltroco is truly transformational for DCG and will be a key differentiator for us in the dealer-driven advisory space,” said Dave Cantin, president and CEO of DCG. “While DCG is already one of the largest dealership-focused advisory companies in North America, we are confident that Kaltroco’s new capital, relationships and strategic counsel will further boost our growth trajectory. There is tremendous demand today for our services as public, private and institutional dealership owners look for guidance with succession planning and evaluation services, in addition to buy-side and sell-side advisory assignments. Our expansion will benefit DCG’s clients and employees alike and we are excited to pursue the next phase of our growth with the Kaltroco team at our side.”
“We are exceptionally impressed by all that Dave and his team have accomplished in the six short years since DCG was founded. We are excited by the company’s many opportunities for continued growth, and we look forward to supporting management as they pursue their key value creation objectives in the years to come,” said Kenneth Hammond, chief investment officer for Kaltroco. “Kaltroco has a long history of supporting fast-growing service businesses with unique and disruptive service models, and it was clear from our earliest conversations with Dave and his team that DCG is a true innovator in its industry, with a thoughtfully developed and distinctive service approach that offers differentiated benefits to the company’s auto dealership clients. We are eager to work with Dave and the DCG team as we look to take advantage of many enticing opportunities in the sector.”
Baird served as the exclusive financial advisor to DCG and a Hogan Lovells team led by Bill Curtin served as legal advisor to DCG on the transaction.