Situation
Day Motor Sports, LLC (“Day Motor Sports”) has been a leading bumper-to-bumper distributor of aftermarket parts and supplies for the enthusiast racing industry for nearly a half-century.

In 2011, Gen Cap America, Inc. (“Gen Cap”) acquired a majority stake in the Company to provide liquidity for certain management-owners.

Objective
With Gen Cap nearing the end of the fund horizon for the vehicle invested in Day Motor Sports, Matrix was retained to provide a return on capital to the fund’s LPs.

Management remained flexible on their roles going forward and were either willing to entertain offers for their membership interests, but were also ready to stay invested and grow their ownership along with the broader Company.

Solution
Matrix manufactured a process that struck a balance between getting a broad market read for valuation and partnership, while not straying from the mandate to exclude all direct competitors from participating.

With management ready to reinvest meaningfully in the enterprise, Gen Cap elected to sell the business to the existing minority ownership group rather than one of the third-parties. Management is confident in the near-term opportunities present to the business and are eager to create additional value for themselves.