MidOcean Announces Successful Close of Single-Asset Continuation Vehicle for Cloyes

Key Terms

single-asset continuation vehicle financial

A single-asset continuation vehicle is a new legal entity created to hold one specific asset — typically a company or property — after an investment fund decides to keep that asset instead of selling it. For investors, it matters because they may be asked to move their stake into the new vehicle or sell out; the decision affects liquidity, future fees, voting control and how the asset’s value will be realized, much like moving a single item from a shared storage unit into its own rented locker.

alternative asset manager financial

An alternative asset manager is a professional or firm that invests on behalf of clients in assets outside of traditional options like stocks and bonds, such as real estate, private companies, or commodities. These managers seek to diversify investment portfolios and potentially improve returns by exploring less common investment opportunities that are often less liquid and more specialized. Their work matters to investors because it can help spread risk and access unique sources of growth not available through standard investments.

alternative credit financial

Alternative credit is lending and debt investment that comes from non‑traditional sources outside big banks and public bond markets, such as private loans, marketplace lending, and specialty finance. It matters to investors because it can offer higher returns and help diversify a portfolio, but typically carries greater credit risk, less transparency and liquidity—think of it as lending to a small business or neighbor instead of parking money in a savings account.

structured equity financial

Structured equity is a customized form of company financing that blends ordinary shares with extra features—such as priority on payouts, fixed-like payments, or rights to buy more stock later—designed to balance upside potential and downside protection. Think of it as a hybrid between shares and a safety net: it can limit losses for some investors while still letting them benefit if the company grows, so it affects ownership percentages, payout order in a sale, and potential returns.

automotive aftermarket technical

The automotive aftermarket is the market for replacement parts, accessories, maintenance and repair services for vehicles after they leave the factory. Like the steady business of fixing and upgrading houses after you move in, it represents recurring demand that can provide predictable revenue, profit margins and resilience for companies, making it important to investors who care about long-term cash flow and exposure to vehicle ownership trends.

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NEW YORK--(BUSINESS WIRE)-- MidOcean Partners ("MidOcean"), a premier New York-based alternative asset manager specializing in middle-market private equity, alternative credit, and structured equity, today announced the closing of a single-asset continuation vehicle for Cloyes Gear and Products, Inc. ("Cloyes" or the "Company"), the North American leader and global designer, developer, manufacturer, and distributor of mission-critical timing drive systems and components for the automotive aftermarket. The continuation vehicle secured approximately $300 million in commitments, with funds managed by Hamilton Lane (Nasdaq: HLNE) serving as sole lead investor.

In connection with the continuation vehicle, MidOcean-managed entities made an additional investment in Cloyes, and MidOcean will continue to own a controlling stake in the Company. The new investment, alongside the continuation vehicle, extends MidOcean’s partnership with Cloyes and supports the Company’s continued growth and strategic initiatives, including acquisitions, in the automotive aftermarket sector.

The continuation vehicle enables MidOcean to extend its ownership of a high‑performing portfolio company with significant remaining value creation potential, while providing existing investors with flexibility to realize liquidity or continue their investment alongside the firm.

Since MidOcean’s initial investment in Cloyes in 2022, the Company has strengthened its leadership position in the automotive aftermarket and achieved significant growth through product innovation, category expansion, strategic acquisitions, and operational improvements. As part of this evolution, Cloyes CEO John Hanighen was appointed Chairman of the Board, reflecting MidOcean’s continued confidence in his leadership and the Company’s strategic direction. Cloyes is differentiated by its extensive product portfolio, global sourcing capabilities, and strong relationships with leading distributors and retailers.

The automotive aftermarket continues to demonstrate resilient demand dynamics, supported by aging vehicle fleets, increasing vehicle complexity, and sustained consumer reliance on personal transportation. Cloyes’ strong brand recognition, technical expertise, and broad distribution network position the Company as a key supplier in maintaining and extending vehicle life cycles.

“Cloyes is a high-quality, market-leading business with a strong track record of performance and a differentiated position in the automotive aftermarket,” said Daniel Penn, Managing Director at MidOcean. “We’ve been proud to partner with the Cloyes management team in driving growth and operational excellence, and we believe the Company is well-positioned to capitalize on favorable industry trends. This transaction underscores our conviction in Cloyes’ long-term value creation potential.”

“Cloyes has built a reputation as a trusted supplier of critical engine components, and demand for our products remains strong,” said John Hanighen, Chief Executive Officer of Cloyes. “With MidOcean’s continued support, we are focused on expanding our product offerings, enhancing our supply chain capabilities, and delivering best-in-class service to our customers worldwide.”

“Cloyes represents a compelling investment opportunity, underpinned by its strong market leadership and exposure to durable automotive aftermarket trends,” said Tom Kerr, Co-Head of Investments and Co-Head of Secondary Investments at Hamilton Lane. “We look forward to partnering with MidOcean and Cloyes’ management to support the Company’s next phase of growth.”

Piper Sandler & Co. served as exclusive financial advisor and Kirkland & Ellis LLP served as legal advisor to MidOcean in connection with the continuation vehicle.

About MidOcean

MidOcean Partners is a premier New York-based alternative asset manager specializing in middle-market private equity, alternative credit, and structured equity. Since its inception in 2003, MidOcean Private Equity has targeted investments in high-quality middle-market companies in the consumer and business services sectors. MidOcean Credit Partners was launched in 2009 and currently manages a series of alternative credit strategies, collateralized loan obligations (CLOs), and customized separately managed accounts. In 2024, MidOcean expanded its platform to include structured equity, positioning the firm as a leading provider of capital solutions to the middle market. For more information, please visit https://www.midoceanpartners.com/.

About Cloyes

Cloyes is the North American leader and global designer, developer, manufacturer and distributor of mission-critical timing drive systems and components for the automotive aftermarket. Founded in 1921, the Company leverages their superior quality and best-in-class VIO (“vehicles in operation”) coverage to produce mission critical components used in high-performance and replacement applications. Cloyes serves a broad customer base, including wholesale distributors, national and local retailers, re-packagers, and production engine builders, and sells its products under the Cloyes® brand throughout North America and Dynagear® in Mexico.

About Hamilton Lane

Hamilton Lane (Nasdaq: HLNE) is one of the largest private markets investment firms globally, providing innovative solutions to institutional and private wealth investors around the world. Dedicated exclusively to private markets investing for more than 30 years, the firm currently employs approximately 780 professionals operating in offices throughout North America, Europe, Asia Pacific and the Middle East. Hamilton Lane has $1.0 trillion in assets under management and supervision, composed of $146.1 billion in discretionary assets and $871.5 billion in non-discretionary assets, as of December 31, 2025. Hamilton Lane specializes in building flexible investment programs that provide clients access to the full spectrum of private markets strategies, sectors and geographies. For more information, please visit our website or follow us on LinkedIn.

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Source: MidOcean Partners