Private equity fund invests in auto supplier

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Traverse City Products has expertise is in manufacturing glass hardware components, including window sashes, lift plates, sunroof reinforcements and decorative trim. Courtesy Traverse City Products

The capital management arm of a local investment banking firm has made an investment in a northern Michigan automotive supplier.

Grand Rapids-based Charter Capital Partners said last week that it invested in Traverse City-based Traverse City Products (TCP) from its Charter Growth Capital Fund (CGCF).

CGCF provided mezzanine debt and an equity co-investment in support of the acquisition.

Birmingham-based Colfax Creek Capital was the lead investor in the transaction, which closed on March 10.

Terms of the deal were not disclosed.

The investment by Colfax Creek and CGCF enabled the current owners to completely exit the business.

The current management team will continue to lead the business with the oversight of an operationally focused board of advisers.

“The Charter Growth Capital Fund team is delighted to partner with Colfax Creek on this investment to help propel the company forward,” said John Kerschen, president and managing partner at Charter Capital Partners. “With a longstanding history as a trusted supplier, TCP has significant growth potential and is a welcome addition to our portfolio.”

Jason Duzan, Partner at Colfax Creek, called TCP “an industry leader” with “solid” customer relationships.

“The company’s robust material processing capabilities present substantial opportunities for diversification and growth,” he said. “We’re excited to partner with the TCP management team, in conjunction with CGCF, to accelerate the company’s momentum.”

Charter Capital Partners

Founded in 1989, Charter Capital Partners offers investment banking and private capital investing advisory services, including buy- and sell-side mergers and acquisitions, succession planning, business valuation and capital raise.

Charter Private Capital Management, launched more than a decade ago, is the registered investment adviser arm of the firm, managing numerous venture capital funds and private investment vehicles, including the CGCF, Michigan Accelerator Fund I, MAF Opportunity Fund and multiple special purpose entities.

CGCF invests up to $5 million of mezzanine debt and/or equity capital into lower middle-market companies in the Great Lakes region.

Colfax Creek Capital

Colfax Creek Capital is a private investment firm that takes a long-term approach to investing in smaller middle market companies in the consumer product, service and industrial sector with EBITDA from $2 million up to around $5 million.

Traverse City Products

Founded in 1982, Traverse City Products is an ISO 9001-accredited manufacturer that provides roll forming, stamping, welding and various assembly processes for the automotive industry.

Its particular expertise is in manufacturing glass hardware components, including window sashes, lift plates, sunroof reinforcements and decorative trim.

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