19th Capital Group
Acquisition, Restructuring, Strategic Performance Improvement and Hands-On Management of a New Opco, Leveraging the Hilco Global Platform.
Hilco Global was able to apply its combined expertise in asset valuation, lease receivables, corporate restructuring and operations to create a practical monetization solution that empowered Element Fleet Management Partners’ graceful exit from 19th Capital Group.
Element Fleet Management sought a buyer and strategically-aligned operator for its 19th Capital Group unit – a provider of asset financing for the North American Transportation industry, including truck leasing and fleet management services – which was at risk as a going concern.
Working primarily remotely, yet remaining in continuous communication with Element’s Executive Team during the early weeks of COVID-19, Hilco was able to develop a practical and appealing monetization solution that enabled Element’s timely exit from its investment in 19th Capital.
At its core, this solution featured a new operating company run directly by the Hilco Performance Solutions team. The new structure also provided Element with a high degree of confidence and comfort on two critical aspects of the transition: It ensured both continuity of quality service to 19th Capital’s existing customers, while also providing continued employment for the vast majority of its valued employees.
Hilco pooled the collective resources of its Valuation, Receivables, and Performance Solutions teams, bringing the transaction to completion in a joint venture with a partner within 90 days, including a closing within two weeks of an agreed upon purchase price.
“Hilco’s multidisciplinary team was truly a distinguishing factor for us. They understood the numerous facets of our businesses and valued it fairly. They developed a strategy that has allowed nearly all of our employees to remain with the new company and a structure that provides continued, high quality service to our valued customers as well. Their recent involvement in high profile fleet deals of a similar nature, as well as their flexibility and resilience in working with us through the many challenges of the pandemic period, were instrumental in our decision and in the successful execution of the transaction.”
Former President, 19th Capital Group
The newly created operating company, H19 Capital, headed by Steven Tanzi- President of Hilco Performance Solutions, purchased thousands of semi-trucks and trailers, all trucking service and support machinery & equipment, all intellectual property, and a substantial portfolio of accounts receivable, including over 1600 existing truck leases.
H19 Capital also assumed the lease of two truck yards as well as a 136,000 square foot facility in Indianapolis, Indiana featuring engine maintenance, detailing, body and paint shops. This provides for a total combined yard capacity to store over 1700 trucks.
Under the leadership of Hilco Performance Solutions, more than 50 jobs were saved, and the company is now operating with significantly enhanced efficiency to sell and service trucks, manage its existing lease portfolio and pursue the acquisition of new leased truck fleets that can be managed under the H19 operating umbrella.
The acquisition of 19th Capital demonstrates the unique capabilities and benefits of the Hilco Global platform for clients.
- Asset Valuation
- Lease Receivables
- Restructuring Plan & New Opco Mgmnt
- Hilco Valuation Services
- Hilco Receivables
- Hilco Performance Solutions