CNL Strategic Capital LLC, a publicly registered non-traded limited liability company, has purchased a majority equity stake and made a concurrent debt investment in ATA National Title Group in partnership with ATA’s management. This is the eighth company in CNL Strategic Capital’s portfolio.
Founded in 1999 and headquartered in Farmington Hills, Michigan, ATA is a national independent title insurance agency and settlement service provider for the residential resale, residential refinance, commercial and default real estate markets.
According to a filing with the Securities and Exchange Commission, CNL Strategic Capital purchased an approximately 75 percent interest in ATA Holding Company for approximately $36 million. Additionally, on the closing date of the acquisition, it made an approximately $37 million debt investment in subsidiaries of ATA in the form of senior secured notes. The remaining ATA units of equity membership interest are owned by members of the ATA executive management team and former controlling interest owners.
ATA’s brands include Attorneys Title Agency, Greco Title Agency, Midstate Title Agency, Seaver Title Agency and Talon Title Agency. ATA has more than 400 employees across 60 offices in Michigan, Indiana, Ohio and Illinois, and completes more than 50,000 transactions annually.
CNL Strategic Capital seeks to acquire controlling equity stakes in combination with loan positions in what it deems as durable and growing middle-market businesses. As of the fourth quarter of 2020, its investment portfolio had a fair value of $231.2 million. CNL Strategic Capital is externally managed by CNL Strategic Capital Management and Levine Leichtman Strategic Capital