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September 03, 2015 1 min read
Auto parts suppliers need to keep an eye out for what the next wave of changes in 2020 and beyond may bring.

The auto parts business has always been a capital-driven industry. Especially today, as suppliers are required to make big investments, with the push into new markets, the race to develop cutting-edge products and supply chains running close to capacity.

Many parts makers are seeking newer sources of capital to fund their growth. In addition to private equity sources, they are exploring innovative partnerships and venture capital investments, as well as more traditional funding sources, such as mergers, recapitalizations and cash injections from strategically-minded investors.

Late last year, for instance, the state of Michigan, with a group of wealthy investors, launched a $147.5-million private equity fund to attract and help smaller auto suppliers.

Read more at PE HUB Network.