Investment enables Michigan-based manufacturer to expand its operations to meet growing demand
Detroit, Michigan 2016 – Arctaris Michigan Partners, LLC (“Arctaris”), a middle market debt firm, has announced the execution of a GrowthDebt credit facility totaling $5.0M for Advanced Technology Automotive Company, LLC (“ATAC”), an affiliate of Advanced Composite Technology, Inc (“ACT”). This transaction represents the fifth investment for Arctaris’ Michigan fund, which was formed to provide growth capital to Michigan businesses.
ATAC manufactures an electric lightweight commercial utility vehicle (“Firefly”) for the $5.0Bn essential services market comprised of parking enforcement, correctional facilities, airports, universities and parks. Annually, the essential vehicle market replaces 20% of its 100,000 vehicles, which translates to a $600M market. The Firefly product reduces operating costs for owners by 80%, when compared to the existing solutions. ATAC’s proprietary battery management systems provide significant advantages in terms of speed (50 miles per hour) and range (up to 60 miles). The Company has delivered vehicles to several cities including Seattle, San Francisco, Pasadena and Portland.
Gilbert Villarreal, CEO of ATAC said, “Arctaris has proven to be a great partner for Advanced Technology Automotive Company. Beyond providing non-equity-dilutive capital, their team is working hard alongside ours to deliver value to our business.”
Jonathan Tower, Managing Partner of Arctaris, stated, “Financing the growth of ATAC is a rare triple bottom line opportunity that could deliver significant economic development for Michigan, environmental sustainability through increased penetration of electronic vehicles and profits for the ownership. Arctaris is committed to help deliver these results for our community.”
Arctaris Michigan Partners: Arctaris launched the Michigan Income and Principal-Protected Growth Fund, LP (the “Michigan Fund”) in 2013 in partnership with the Michigan Economic Development Corporation to provide growth debt to Michigan businesses otherwise underserved by credit markets. The State of Michigan, through the Michigan Strategic Fund, is one of the Michigan Fund’s key investors and has partnered with Arctaris to increase capital availability and create jobs in the state. Michigan’s investment comes out of its $79M allocation from the $1.5B State Small Business Credit Initiative, which is managed by the U.S. Department of the Treasury to support lending to small businesses.
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