A private investment firm connected to longtime automaker executive Mark LaNeve aims to spend around $400 million over the next three years buying minority stakes in auto dealerships.

Former Goldman Sachs Group Inc. partners Michael Esposito and Scott Romanoff are teaming up with credit manager HPS Investment Partners to back U.S. franchise businesses and their owners.

Franchise Equity Partners (“FEP” or the “Firm”), an independent and newly established private investment firm, today announced its official launch as a portfolio company of investment funds managed by HPS Investment Partners, LLC (“HPS”). HPS is a leading global alternative investment firm with over $75 billion of assets under management.