Michigan Capital Advisors is a private equity firm focused on the underserved Tier II and III suppliers in the automotive and transportation related industries with a presence in Michigan. These companies have been chronically underserved by the investment community and many are small privately owned businesses which may have extreme customer concentrations and limited product offerings. This lack of access to capital adversely impacts the suppliers’ ability to keep up with customer demands and to diversify beyond automotive.
The large automotive and transportation manufacturers are adapting to global, regional and local demands. They are standardizing vehicle platforms, consolidating their supply chains, introducing new technologies, and expanding through joint ventures and partnerships to meet the challenging environment across the globe.
The State of Michigan is at the heart of the automotive evolution. Michigan produces 23% of the nation’s vehicles and is home to 61 of the top 100 North American suppliers. The automotive industry is responsible for 14.6% of the State’s workforce and $14.8 billion of personal income. Much of Michigan’s automotive footprint comes from 1,700 Tier II and III automotive and transportation related suppliers.
Founded in 2016, Michigan Capital Advisors sees a tremendous opportunity to invest in the middle-market Tier II and III suppliers with proven management teams and demonstrable track records. The industry knowledge and customer relationships that Managing Partner Charles G. “Chip” McClure and others in the management company have in the industry, coupled with operational expertise and efficient access to appropriate capital, ensures the ability to develop and implement a value creation thesis for the portfolio companies.
- Deep expertise in and a unique focus on the automotive and trasportation-related industries.
- Proven ability to diversify into aerospace, appliances, medical devices, and other manufacturing verticals.
- Long-standing relationships with CEOs, other senior executives and industry leaders and specialists.
- Value creation through revenue growth and operational improvements, not financial engineering.
- Conservative capital structure with targeted leverage below 3.5x and a disciplined approach to valuation.
- Deep roster of experienced executives to augment and advise management teams.
Transparency & Partnership
- Efficient underwriting process with direct access to the decision makers.
- Honest and timely feedback on all opportunities.
- Long-term investment horizon motivated by what is best from a strategic and a value creation standpoint.
- Principals are investors in the fund driving full alignment with our management partners and LPs.