Gibson Dunn, Mayer Brown Steer Crestview’s AutoLenders Stake Buy

Gibson, Dunn & Crutcher advised private equity firm Crestview Partners on its majority investment in AutoLenders, a regional company that aims to go national with its “omnichannel” platform for financing, buying, and selling used automobiles.

Mayer Brown advised Berlin, N.J.-headquartered Auto Lenders Liquidation Center Inc. on the transaction, for which no financial details were disclosed.

AutoLenders says the highly fragmented domestic used car market is worth around $840 billion in annual sales, of which its current share is around $700 million annually.

The company’s unique business model covers the “full life cycle of automobiles,” including an approximately $1 billion portfolio of new automobile leases.

Whereas the national market has low e-commerce penetration, AutoLenders’ web site lets customers buy or sell vehicles, and it also has a network of used car dealerships in New Jersey and Pennsylvania, it said.

Dan Kilpatrick, Crestview partner & head of financial services, said AutoLenders fits well with many of Crestview’s investments in automotive and specialty finance companies and businesses with rapid dealership expansion strategies.

“As we have gotten to know the company, it has become clear that the team at AutoLenders is set to thrive in an increasingly digital and dynamic automotive marketplace,” Kilpatrick said.