Hamilton Lane, Inc. served as the sole lead investor in a single‑asset continuation vehicle that secured approximately $300 million in commitments for Cloyes Gear and Products, Inc., a North American leader in automotive aftermarket timing components. The vehicle gives MidOcean Partners a controlling stake in Cloyes while granting Hamilton Lane a substantial equity position in the company.
Cloyes is described as the North American leader and global designer, developer, manufacturer, and distributor of mission‑critical timing drive systems and components for the automotive aftermarket. The company’s growth has been driven by product innovation, category expansion, and strategic acquisitions—including the 2023 purchase of Rotomaster and the 2024 acquisition of Automotive Tensioners Incorporated (ATI). MidOcean’s initial investment in Cloyes in 2022 laid the foundation for the current continuation vehicle, which allows the sponsor to extend its ownership while providing liquidity to existing investors.
The continuation vehicle structure enables MidOcean to retain its controlling interest in Cloyes and to bring new capital into the business. Hamilton Lane’s participation aligns with its strategy of partnering with middle‑market private‑equity firms to deploy capital into high‑margin operating companies. "Cloyes represents a compelling investment opportunity, underpinned by its strong market leadership and exposure to durable automotive aftermarket trends. We look forward to partnering with MidOcean and Cloyes' management to support the Company's next phase of growth," said Tom Kerr, Co‑Head of Investments and Co‑Head of Secondary Investments at Hamilton Lane.
"Cloyes is a high‑quality, market‑leading business with a strong track record of performance and a differentiated position in the automotive aftermarket," said Daniel Penn, Managing Director at MidOcean. "We've been proud to partner with the Cloyes management team in driving growth and operational excellence, and we believe the Company is well‑positioned to capitalize on favorable industry trends. This transaction underscores our conviction in Cloyes' long‑term value creation potential." CEO John Hanighen added, "Cloyes has built a reputation as a trusted supplier of critical engine components, and demand for our products remains strong. With MidOcean's continued support, we are focused on expanding our product offerings, enhancing our supply chain capabilities, and delivering best‑in‑class service to our customers worldwide."
The automotive aftermarket remains a resilient sector, driven by the aging vehicle fleet and the need for high‑quality replacement parts. Cloyes’ focus on timing drive systems positions it well within this market, and the infusion of capital from the continuation vehicle is expected to support further product development and potential acquisitions. For Hamilton Lane, the deal expands its fee‑earning platform and broadens exposure to a durable industry, reinforcing its strategy of investing in high‑margin operating companies.
The transaction strengthens Cloyes’ capital base, provides a pathway for future growth initiatives, and positions the company to capitalize on continued demand for aftermarket timing components. For Hamilton Lane, the deal enhances its portfolio of middle‑market investments and underscores its role as a leading participant in the growing continuation‑fund market.
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