Franchise Equity Partners invested $55 million in Parks Automotive Group of Kernersville, N.C., to acquire a minority stake in the auto retailer, the firm said Thursday.

The financial stake detail follows Parks Automotive partnering with the New York private investment firm to purchase two Stellantis stores near Charlotte, N.C., on Jan. 18. The investment amount was not revealed when that acquisition was announced.

“We took a minority, permanent stake in Parks Automotive Group,” Franchise Equity Partners Co-Managing Partner Scott Romanoff told Automotive News.

Romanoff would not disclose the percentage stake that Franchise Equity Partners has in Parks Automotive. He said Parks Automotive CEO Adam Parks has a “long-term strategic plan to grow his operations anchored in North Carolina,” and Franchise Equity Partners will provide support for that plan.

“We remain a passive partner,” Romanoff said. “Adam and team continue to fully run operations, but we’ve provided them the intellectual and equity capital that they need to further their objectives.”

Family-run Parks Automotive is the second auto retailer investment for Franchise Equity Partners, following its $70 million October investment in Georgica Auto Holdings. Shortly after that partnership was announced, Georgica Auto bought three dealerships in Connecticut.

Launched by Romanoff and Michael Esposito in November 2021, the firm received $1 billion in funding from HPS Investment Partners. It was tasked to invest in five sectors, including automotive dealerships, with about $400 million targeted for that sector.

Romanoff said the remaining amount — about $275 million — will get invested in more partnerships such as the ones with Parks Automotive and Georgica Auto. He said the firm prefers multigenerational organizations and partners in distinct geographies.

Don Reese, CEO of Franchise Equity’s auto holdings, told Automotive News that as opportunities arise, the firm now has a financial and structural footprint that allows them to facilitate deals more efficiently and quickly.

“We are now, as an investor, a minority partner, approved by 13 manufacturers between the two deals that we’ve done,” Reese said.