Tail End Invests in Continuation Vehicle to Support Fenix Part's Growth

Pittsburgh, PA – May 21, 2024: Tail End Capital (“Tail End”) completed a GP-led secondary investment into a continuation vehicle managed by Stellex Capital Management, an operationally focused middle-market private equity firm with $2.8 billion of assets under management. With tremendous runway to keep growing via acquisitions, the continuation vehicle (“CV”) provides Stellex with more time and capital to continue the rapid growth of Fenix Parts (“Fenix”), the largest privately held recycler and reseller of original equipment manufacturer (“OEM”) automotive parts.

Fenix has 32 full and self-service sites across the U.S. Since Stellex’s acquisition in 2018, Fenix has significantly expanded its distribution network and strengthened its geographic density through the successful completion and integration of 19 add-on acquisitions. Fenix has grown to become an industry-leading player of recycled OEM automotive parts, with sites across the Northeast, Southeast, Midwest and Southwest.

Stellex was able to provide an attractive return for exiting investors through the CV and raise additional capital in reserve to continue to fund Fenix Parts’ growth initiatives.

Michael Livanos, Managing Director at Stellex, commented, "It has been remarkable to witness Fenix's evolution over the past few years. The Company has not only grown significantly but has also enhanced its sophistication, building a strong and professionalized business. We believe Fenix's robust acquisition pipeline and strong ability to successfully integrate new locations, position the Company as the consolidator of choice in the space. This additional capital will enable Fenix to further seek to expand its geographic footprint and enhance its customer service capabilities as a leading nationwide provider of recycled OEM parts. We have also focused on creating a growth trajectory for high-performing employees to take on expanded roles and responsibilities, which will be key to supporting Fenix's continued success."

Justin Bertram, Partner at Tail End, said: “Tail End is excited to support the continued growth of this market-leading recycled automotive OEM platform. The CV extends the value creation path of one of Stellex’s top performing companies while providing interim liquidity with attractive returns for the portion of their investors looking for liquidity.”

“Fenix Parts is a resilient business with proven ways to grow. We’re excited to partner with Stellex and Fenix management as they continue to expand the platform. The CV’s dry powder will strengthen Fenix Part’s ability to source and fund acquisitions and invest in innovative initiatives,” said Paul Cohn, Partner at Tail End.