Automobile Dealership Investments
If you would like information about investing in Prime Dealer Equity Fund, please submit your information below.
Welcome to Prime Dealer Equity Fund
Coleman Automotive currently owns and operates car dealerships in Spirit Lake and Estherville, Iowa. Since 2024, these dealerships have become highly profitable. Prime Dealership Equity Fund (the “Fund”) has been formed to pursue a private equity strategy to realize long term capital appreciation through co-investing with Coleman Automotive in additional income-producing car dealerships across the U.S. to be operated by Coleman Automotive to employ the same operational philosophies as have been employed in their current dealerships. The Fund intends to provide capital to co-invest with Coleman Automotive with a goal of rapid return of investment capital back to the Fund and rapid expansion by acquiring dealerships with high profit potential. Potential investors have the opportunity to purchase membership interest (“interests”) in the Fund.
- APPROACH
Our Approach
The Fund intends to co-invest with Coleman Automotive to acquire new car dealerships. This co-investment approach with an experienced dealership operator provides the Fund a path to acquiring top dealerships across the country, with Coleman Automotive targeting 40 dealership rooftops in the next 10 years.
- OUR TEAM
Dealership Operation Team
Our team of seasoned professionals brings unparalleled expertise and dedication to the automotive investment sector.
KYLE COLEMAN
CEO
Over 20 years of experience in the retail automotive industry and finance. Mr. Coleman is the CEO and majority owner of Coleman Automotive Group LLC. He has been the General Manager of multiple new car dealerships, consistently exceeding industry performance metrics. Mr. Coleman has a proven track record of acquiring, turning around, and optimizing automotive dealerships to perform above industry standards. He has also developed a talented team ready to relocate and take on key roles within dealerships that Coleman Automotive intends to optimize.
Through Mr. Coleman’s extensive industry relationships, he has built channels for proprietary deal flow within the automotive dealership and retail industry. The Fund Manager believes it enjoys a competitive advantage due to these proprietary deal flow channels.
RALPH MARCUCCILLI
MANAGER
Seasoned executive and investor with a strong track record of leadership in the banking, financial technology, and investing. With a career spanning over three decades, Ralph has been at the forefront of leveraging automation and cutting-edge technology to transform business. His expertise in developing user-centric, technology-driven solutions has helped organizations streamline operations, enhance customer experiences, and drive growth.
Ralph is deeply committed to fostering innovation across all of the industries he spans, empowering organizations to adapt to the rapidly evolving technological landscape, and championing advancements that define his investment strategies.
- OPPORTUNITY
Investment Opportunity
Why Car Dealership?
Car dealerships in the U.S. operate under tight restrictions imposed by state laws and limitations set by manufacturers. As many privately held dealerships have been passed down over multiple generations, some reach the point where there are no family members to continue the legacy. This presents an opportunity for Coleman Automotive to acquire dealerships with significant profit potential. Deep industry relationships place Coleman and the Fund in a strong position to acquire these dealership franchises.
Key Benifits for Investors
Investing in car dealerships through the Fund provides a unique opportunity for accredited investors to participate in a profitable and stable business sector. The Fund offers a preferred equity structure with priority return of capital invested in the Interests before any other distributions, targeting an 8% annual return with full capital return projected within five years. After the initial return of capital, investors retain collectively a 35% equity stake of the acquiring entity, through their interests, enabling continued participation in the dealership’s growth and profits. Through a strategic co-investment with Coleman Automotive, the Fund intends to leverage its proven dealership management expertise to maximize returns and long-term income potential. This structure provides stability and attractive upside for accredited investors seeking sustained profitability in the automotive dealership sector.
Who Can Invest?
The fund only accepts investments from accredited investors with a minimum $100,000 investment. Accredited investors are defined as individuals with over $200,000 annual income (or $300,000 if joint) for the last two years and a reasonable expectation that income will continue at that level. Generally, the Fund will not accept U.S. tax-exempt investors as Members or non-U.S. investors as Members. Detailed qualifications of such accredited status must be confirmed by the Fund’s Managing Member to be eligible to invest.
- FAQ’s
Have Any Questions?
What is the Fund's primary investment strategy?
Co-investing with Coleman Automotive in select new car dealerships across the U.S. .
Will I know which car dealerships are Fund assets?
Yes, the Fund fund will be investing into an LLC which owns individual dealerships and real estate. These dealerships will be reported as Fund assets to investors.
Do investors get a discount on buying a new car?
Yes, investors will be allowed by Coleman Automotive to purchase one car per year at dealer cost from dealership co-owned by the Fund.
What are the Fund's growth plans for the future?
Coleman Automotive aims to grow rapidly targeting 40 dealership rooftops by 2035. The Fund will be co-investing in more dealerships. This information is available in the Private Placement Memorandum.
What kind of return can I expect?
Fund investment details are found in the Private Placement Memorandum, which is available after a prospective investor has been qualified as “accredited” by the Managing Member of the Fund.
Can I invest through a Corporation, LLC, or Trust?
Yes, the Fund can accept investments from various types of entities. The entity must meet the accredited investor requirements for that type of entity.
Can I invest through an IRA or 401k?
In many cases, investments can be made from a 401k, traditional IRAs, or Roth IRAs. This depends on your 401k plan or the custodian of your IRA account. For specific questions about 401k or IRA eligibility, request information on the form above.
How often can I see updates on the Fund?
The fund uses an investment portal that is updated quarterly so you can track the performance of the Fund’s dealership assets and be informed of upcoming disbursements to Interest holders.
