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ZT Corporate Executes Major Liquidity Event for Investors in a Strategic Management Buyout
Exit of successful auto dealership portfolio generated a MOIC of 2.3X-2.4X for investors over a 5 to 8 years of investment period
HOUSTON, March 30, 2023–(BUSINESS WIRE)–ZT Corporate, a private equity firm that specializes in healthcare and automotive investments, today announced that it has completed a liquidity event for its investors through a strategic management buyout. The liquidity event generated multiple on invested capital (MOIC) for investors ranging from 2.33X-2.43X despite current adverse market conditions and recent industry challenges.
In 2015, ZT Motors Holding, LP acquired four auto dealerships, including Mercedes, Toyota, BMW and Mazda, in Fort Walton Beach, Florida. In 2019, it acquired Steve Rayman Chevrolet in Marietta, Georgia and further added Ron Carter Autoland in Texas in 2020 during the COVID-19 pandemic. This acquisition included Chevrolet, GMC, Buick, Ford, Chrysler, Dodge and Jeep. ZT Motors Holding, LP funded these acquisitions through a combination of debt and equity.
Taseer Badar, Chairman and Chief Executive Officer of ZT Corporate, said, “We have delivered a liquidity event for our investors in a time when the overall economy is in midst of a liquidity crunch. We are seeing banks fail due to liquidity, businesses struggling with liquidity and the auto industry experiencing an unprecedented time. I wanted to ensure that with this management buyout, even with current macro headwinds, our investors would receive a healthy return and have access to cash in current market conditions. We commend the operational leadership of our automotive business, led by ZT Motors President Keith Monnin, for always being ahead of our competition and delivering for our investors.”
Sheheryar Shah, Chief Investment Officer of ZT Corporate, said, “We wanted to maximize investor return and manage risk prudently as market conditions are changing with an unseen velocity for the past four years. We stayed disciplined and executed on what we know and pivoted when required in a proactive manner.”
Significant Impact for Investors
“I retired over four years ago, and investing with ZT Corporate creates an income stream that strengthens my family’s financial security. ZT Motors was an attractive investment vehicle due to ZT Corporate’s secure investment structure and our long-term positive relationship,” said James Holly, MD.
“Investing in ZT Motors has proven significant in my long-term investment strategy. I decided to invest based on the honesty, transparency and business acumen of the ZT Corporate leadership team. Their vigilance and dedication to creating value for their investors made the project extremely successful,” said Pradip Morbia, MD.
“I have been investing with ZT Corporate for more than 20 years, and the team has always provided sound advice that has sharpened my path of increasing my financial independence. The opportunity to invest in ZT Motors was unbelievably attractive due to extremely high barriers of entry, and it was capital intensive. The deal was structure in a way that these obstacles were able to be overcome, which in the end became fruitful for everyone involved,” said Chester Pitts.
“I was confident investing in ZT Motors due to the low risk and resilient nature of the automotive sector and high demand for vehicles in the U.S. ZT Corporate’s model to acquire, consolidate and operate dealerships with their trademark stamp of professionalism made it an easy and rewarding decision for me,” said Asaf Riyaz Qadeer, MD.
“I have benefitted from a proven track record of success when investing with ZT Corporate, with many deals bringing life-changing impact to my financial future. When I learned about ZT Motors, I couldn’t resist the opportunity to be a part of an impressive portfolio with well-respected auto brands like BMW, Mercedes, Toyota and more. ZT’s leadership and operational teams have the grit and tenacity that will always entice me to invest because I have full confidence in our joint success,” said Travis Johnson.
Financing and Advisors
BMO Harris Bank acted as the lead agent for the syndicated financing of the transaction. Stout Risius Ross, LLC was engaged as financial advisor and delivered a fairness opinion for the transaction. Clark Hill acted as the lead legal counsel on the transaction.
About ZT Motors
ZT Motors was founded in 2015 and has become one of the fastest-growing verticals within ZT Corporate’s portfolio. ZT Motors operates automotive dealerships in Texas, Florida and Georgia for Toyota, BMW, Chevrolet, Mazda, Mercedes-Benz, Ford, GMC, Buick and Chrysler Dodge Jeep Ram. ZT Motors was recognized as one of the top 150 auto groups in the nation in 2022.
About ZT Corporate
Established in 1997, ZT Corporate is a Houston-based private equity firm with offices in New York and Los Angeles. The firm focuses on healthcare and auto dealerships as core investment verticals. ZT Corporate’s investment team collaborates with its operators to support the day-to-day operations of the firm’s portfolio investments. This close collaboration drives value creation by developing stronger operator-investor relationships, cross-functional expertise, and a deeper understanding of the target industries. Since its founding, ZT Corporate has successfully completed more than 60+ investments, including platform companies and follow-on opportunities with multiple liquidity events for its investors. The team provides full-service wealth management services to its clients and investors and creates value through a broad range of financial channels, including traditional and alternative investments. For more information: www.ztcorporate.com
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