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  • Writer's pictureFranchise Equity Partners

Parks Automotive Group welcomes Franchise Equity Partners as minority joint venture partner.

  • Parks Automotive Group operates 21 automotive retail franchises across NC, SC, and VA

  • Franchise Equity Partners makes capital investment of approximately $55 million in newly formed joint venture with Parks Automotive Group

  • Agreement gives Parks Automotive Group access to FEP's deep automotive and financial expertise

  • Capital investment supports Parks Automotive Group's recent acquisition of Lake Norman and Gastonia CDJR stores, and future strategic growth plan

Parks Automotive Group, an auto retail group with 21 franchises across the Southeast US, welcomed Franchise Equity Partners (FEP) as a minority partner following a capital contribution of approximately $55 million in connection with the group's recent purchase of the Lake Norman and Gastonia Chrysler-Dodge-Jeep-RAM dealerships in North Carolina earlier this year. Parks Automotive Group is led by its President and CEO, Adam Parks, a second-generation dealer whose father, Hubert Parks, started the business in 1967 with a single Chevrolet dealership in Kernersville, NC. Today, Parks Automotive Group accounts for over 20,000 new and used retail and fleet vehicle sales annually, totaling more than $1 billion in pro forma revenue.

Parks Automotive Group and Franchise Equity Partners

"Our Parks family and team are thrilled to welcome Franchise Equity Partners as a minority shareholder. There is a strong alignment with our company's values and vision. It has been a pleasure getting to know Mike Esposito, Scott Romanoff, Don Reese, Mark LaNeve, and the entire talented FEP team," said Adam Parks, CEO and President of Parks Automotive Group. "Their financial and automotive expertise and flexibility provided great efficiency in completing our partnership and for future opportunities together. The FEP team's form of capital, resources, and unique model will be vitally important and supportive of our strategic growth plans."

Celebrating its second year in operation, Franchise Equity Partners, supplies large scale, best-in-class franchise owners with access to levels of capital and in-house financial expertise that are customarily reserved for public companies, while allowing these businesses to retain full control of their operations.

This transaction marks FEP's second investment in the automotive retail space, after completing a $70 million minority investment in Georgica Automotive Holdings in October 2022.

"We could not be more pleased about this new partnership with Adam Parks and the Parks Automotive Group," said Don Reese, CEO and President of FEP Auto Holdings. "Our teams' combined industry experience and expertise is unparalleled, and we look forward to continued growth together."

"As the automotive industry enjoys continued expansion and innovation, Parks Automotive checks all the boxes we look for when we search for our investments," said Mark LaNeve, Chairman of FEP Auto Holdings.

Franchise Equity Partners' differentiated approach allows them to present a unique offering to prospective, growth-oriented partners in the automotive retail industry: extensive corporate finance experience combined with passive, permanent capital, and deep auto-sector leadership expertise. FEP Auto Holdings Chairman Mark LaNeve calls upon decades of automakerC-suite experience in North America, while FEP Auto Holdings President Don Reese brings an equally deep background in dealer management, operations, and financing.

James Taylor at Truist Securities provided advisory services and Chris Gyves of Womble Bond Dickinson (US) LLP represented Parks Automotive Group in the transaction. Stephen J. Dietrich, Lacey Croy and Keith Sambur of Holland & Knight represented Franchise Equity Partners in the transaction.

"Truist Securities was pleased to source and structure a valuable transaction for our clients, Parks Automotive, with Franchise Equity Partners. This new partnership between two excellent organizations will benefit from the deep automotive experience of FEP and the execution excellence of Parks Automotive Group. Adam Parks and Don Reese are great leaders and their new venture is positioned to be a prominent player in the Carolina and Virginia auto markets," said James Taylor, Managing Director at Truist Securities.

"We are excited to work with FEP as they increase their commitment into the auto retail space and look forward to partnering with them as they continue to grow with their efficient & minority capital model with others in the industry," said Stephen J. Dietrich, Partner at Holland & Knight.

About Franchise Equity Partners

Franchise Equity Partners is a private investment firm specializing in providing capital to franchise businesses and their owners. Its differentiated approach combines extensive corporate finance and operating experience with passive, permanent capital to enable growth, ownership simplification, succession, and estate planning, among other strategic business opportunities. FEP invests across five industry verticals: automotive dealers, restaurants, beverage distribution, heavy equipment dealers and other consumer and business services. FEP has an initial target portfolio size of $1 billion and is an independently operated portfolio company of certain funds and accounts managed by HPS Investment Partners, a leading global-alternative investment firm, with approximately $100 billion of assets under management. To learn more about Franchise Equity Partners, please visit or follow the firm on LinkedIn.

About Parks Automotive Group

Parks Automotive Group is a multi-generational family business, started by Hubert Parks in 1967 with a single Chevrolet store in Kernersville, NC. Today the group operates 21 automotive retail franchises across North Carolina, South Carolina, and Virginia generating over $1 billion in pro forma annual sales from over 20,000 new and used retail and fleet vehicle transactions. Dealerships represent a constellation of mass-market and luxury brands. To learn more about Parks Automotive Group, please visit

#Autos #Franchise EquityPartners #FEP #ParksAutomotiveGroup

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