WESTPORT, CT (October 24, 2018) – Gemspring Capital, a middle-market private equity firm, is pleased to announce an affiliate has completed an investment in Fiesta Insurance Franchise Corporation (“Fiesta” or the “Company”), a leading player in the markets for non-standard auto insurance and tax preparation services.
Fiesta targets traditionally underserved Hispanic communities by empowering “Latinos serving Latinos” through its franchise business model. The Company has over 70 franchisees operating approximately 200 retail stores in 9 states and was the highest ranked insurance franchising opportunity on Entrepreneur’s 2018 Franchise 500 list. Fiesta has grown rapidly as a result of the value it delivers to both franchisees and the over 50 insurance carriers and MGAs with whom it partners. The Company has been founder-owned and operated since inception and continues to be led by its CEO, John Rost.
John Rost commented on the transaction: “I, along with my team at Fiesta, am excited to partner with Gemspring. Their deep knowledge of the insurance industry, as well as retail and franchising, was unique and perfectly suited to Fiesta. With Gemspring’s support, I look forward to continuing our strong history of growth.”
Jon Altman, Managing Director at Gemspring, said: “Fiesta has established a strong position in Latino communities throughout the country and has proven an important partner to its franchisees. By offering a compelling business opportunity for entrepreneurs Fiesta has consistently added new franchisees and new locations. We believe Fiesta can build on its solid foundation and are eager to support John and his team in the next stage of the Company’s development.”
About Fiesta Insurance Franchise Corporation
Fiesta is a leading provider in the markets for non-standard auto insurance and tax preparation services. Founded as four Company-owned retail agencies in 1999 and converted to a franchisor model in 2006, Fiesta now has over 70 franchisees operating approximately 200 retail stores in 9 states. Fiesta is headquartered in Las Vegas, NV and continues to be managed by its founder and CEO, John Rost. For more information, visit www.fiestafranchise.com.
About Gemspring Capital
Gemspring Capital, a Westport, Connecticut-based private equity firm with $355 million of equity capital under management, focuses on making control and structured equity investments in lower middle market companies headquartered in the United States and Canada. Gemspring partners with talented management teams and takes a hands-on approach to driving revenue growth and value creation. Target companies have up to $350 million in revenue and are in the business services, healthcare services, industrial services, software and tech-enabled services or specialty manufacturing sectors. For more information, visit www.gemspring.com.