Henley Investment Management is advancing its car wash portfolio across the Southeast US with the launch of its third fund under the AquaSonic brand.
Following the success of the first two funds, which raised $35 million in equity and secured $45 million in debt, the firm now targets $20 million in equity for Henley Car Wash Fund III, aiming to leverage up to $50 million.
Henley CEO Ian Rickwood explained the firm’s innovative approach:
”We’ve structured this as a series of ‘mini-funds’ where investors can choose specific car wash locations before committing their capital. We’ll do as many separate funds as necessary to get to that level.
The long-term vision is to establish 100 AquaSonic car wash locations by 2029, requiring an estimated $350 million in equity and $650 million in leveraged financing.
”Such a footprint would make AquaSonic one of the largest car wash operators in the US market.
Rickwood added.
The AquaSonic brand has attracted institutional investors, thanks to its membership model, which accounts for 80% of customer revenue.
”With a capex of about $8 million-$10 million per site, you can build these stores for 5-6x earnings, which translates into a yield on cost of 15-16 percent.
Rickwood noted, highlighting the strong financial potential of the brand in a fragmented market.
Henley continues to attract significant institutional investment and is exploring further opportunities in both the US and Europe.
15th August 2024
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