商業快報

PE firm’s many roles attract scrutiny as car parts maker seeks bankruptcy

Clearlake Capital bought, sold and continued to own Wheel Pros even as it collapsed under $1.7bn in debt
Wheel Pros was spending $170mn a year on interest costs, according to Financial Times calculations, while a court filing said operating profit slid to $69mn in 2023

Clearlake Capital reaped nearly $1bn in profit selling car parts maker Wheel Pros in 2021, which it acquired just three years earlier in a buyout worth just over $400mn.

But now Wheel Pros has filed for Chapter 11 bankruptcy protection, collapsing under more than $1.7bn of debt. Its current equity holders will recover nothing. Included in that group being walloped: Clearlake.

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