CHICAGO, IL – October 26, 2016; City Capital Advisors, a Chicago-based middle market investment bank, is pleased to announce the completion of a $10 million private placement of equity capital for Chicago-based ForeverCar Holdings, Inc. Forevercar.com operates an online marketplace that enables consumers to shop, compare, customize and buy vehicle repair protection products to meet their coverage needs. The Company primarily offers vehicle service contracts for sale to consumers through multiple distribution channels. In addition to its direct-to-consumer offerings, ForeverCar.com distribution partners include Uber, CUNA Mutual Group and Compare.com among others. These partners integrate the ForeverCar.com quoting, commerce and fulfillment engine to bring additional value to their customers. The $10 million investment was provided by CMFG Ventures, CUNA Mutual Group’s venture capital entity, Chicago–based KDWC Venture Fund and SAP Fieldglass founder Jai Shekhawat. The new capital will be used by the Company to continue its rapid growth.
“It is a privilege to work with a truly disruptive growth company like ForeverCar.com, which is combining its innovative technology with outstanding customer service to transform an otherwise mundane industry,” said Nick Hurtgen, the City Capital Managing Director who advised ForeverCar on the transaction. “It is also worth mentioning that this transaction has a heavy Chicago-Midwest strategic component,” Hurtgen pointed out. The lead equity investor, Madison, Wisconsin-based CMFG Ventures’ parent company, CUNA Mutual Group, is a leading provider of insurance and financial services products to credit unions and the lead financial sponsor, KDWC Venture Fund, is a leading Chicago venture capital firm that backs companies with sustainable technological advantages in the FinTech space. “We could have searched all over the country and not found a higher quality, more compatible team,” said Mark Hodes, ForeverCar.com CEO. “We are very pleased that our company will continue to have ample capital to continue our growth by expanding our customer base and our offerings. We have several very significant opportunities immediately ahead of us, and it is gratifying to know that we are supported not only with capital but also with the tremendous talent and many relationships that CUNA Mutual Group and KDWC can bring to our company. We appreciate the excellent job that Nick Hurtgen and Mark Timmerman of City Capital did in helping us complete this transaction.”
About City Capital Advisors
City Capital Advisors is an investment bank that advises private and publicly held middle market companies and their owners on sell-side and buy-side mergers and acquisitions; on private capital raises for growth, acquisitions, and ownership transitions; and on financial restructurings. The firm’s ten managing directors, who average more than 20 years investment banking experience, have completed more than 500 middle market transactions over their careers with an aggregate transaction value exceeding $60 billion.
Related News: ForeverCar.com Wins Chicago Innovation Award