Summit to Link Investors, Suppliers: Automotive Finance Focus of Conference

From Detroit Free Press

The credit crunch has not deterred private-equity firms, a powerful force in the automotive industry, from investing in suppliers seeking money for operations, restructuring and new ownership.

But with credit harder to obtain, the size of the deals is on the decline, experts say.

The credit markets and private equity likely will be part of an upcoming discussion this week at the Automotive Industry Restructuring Finance Summit in Dearborn , MI . The conference aims to bring suppliers together with investors, including private-equity firms, hedge funds and banks.

Wray Thorn, managing director of private equity at New York-based Marathon Asset Management, is slated to pitch his firm, which is nearly halfway toward its goal of building a portfolio of auto companies adding up to $1 billion in revenue.

"There are private-equity investors like ourselves that aren’t turned off or deterred by the general state of the automotive industry in the U.S. , but are interested in working with those suppliers that are in a good position to grow if they have the right ownership and sponsorship," Thorn said.

Also on the agenda: lessons learned from supplier bankruptcies.

Sometimes the biggest challenge for a struggling company is coming to grips with its financial distress, said Jim Connor, managing director of Southfield-based BBK’s corporate advisory group.

"There’s just a realization that has to sink in. That’s probably the biggest obstacle when we walk in," Connor said.