PALO ALTO, Calif., and CARMEL, Ind. -

Altamont Capital Partners said the investment firm is “impressed” with Kinetic Advantage, a newly formed floorplan financing company led by industry veterans Marty McFarland, Randy Dohse and Chris Brady.

While specific terms of the transaction were not disclosed on Monday, Altamont announced that it committed “significant equity capital” to Kinetic that so far has a presence in 21 markets.

Led by McFarland, who co-founded Dealer Services Corp. (DSC) in 2005, and joined by Dohse as chief operating officer and Brady as chief information officer who both worked with McFarland at DSC, other members of the highly experienced leadership team at Kinetic are Joe Keadle as senior vice president of of operations and Joe O’Brien as senior vice president of sales and marketing.

The group formed Kinetic with the vision to provide a better floorplan experience to independent dealers by streamlining the customer experience, increasing flexibility and offering increased transparency around fees, all enabled by a market-leading technology platform.

Launched in 21 markets to date, leadership said Kinetic will operate nationally with relationships across auction platforms. In total, the company has secured more than $225 million of initial debt and equity funding to support its expansion.

“Having operated in the auto sector our entire careers, my team and I see a real need for a new provider that can serve as a truly platform agnostic floorplan financing partner to independent dealers,” said McFarland, Kinetic’s chief executive officer.

“We recognize the pain points present in the industry — which have only been exacerbated by the pandemic — and are optimistic that our entry into the market will provide a welcome solution to our new dealer and auction partners,” he continued.

And now Kinetic has more resources for market entry thanks to involvement from Altamont, a private investment firm based in the San Francisco area with more than $2.75 billion of assets under management. Two if tis managing directors discussed the support of Kinetic.

Keoni Schwartz said, “We were impressed by the vision that Marty and his team discussed in our initial dialogue and are thrilled to partner with Kinetic. We have deep familiarity with floorplan financing through our prior investment activity and current portfolio, and recognize the clear market need for a true partner to dealers that will provide transparent pricing, a hassle-free collateral audit process and technology solutions that deliver a more streamlined experience.”

Sam Gaynor added, “Altamont has a track record of backing best-in-class operators in financial services to address market needs, and that is the case with Kinetic. We have committed significant equity capital to the business to support its ambitious loan growth forecast and look forward to leveraging our breadth of operational resources to ensure the success of its national rollout.”

Stephens acted as the exclusive financial advisor and Ropes & Gray and Morrison & Foerster served as legal counsel to Kinetic and Altamont. Financing for the transaction was provided by MidCap Financial.