Prairie Capital, a Chicago-based middle market private equity firm, is pleased to announce the successful sale of Elektra Holding Company, LLC (Elektra), the parent company of Chicago Deferred Exchange (CDEC) from Prairie Capital IV to Wintrust Financial Corporation, a leading Chicago-based financial institution. This exit highlights Prairie’s strategy of partnering with founders and management teams to build market-leading companies in growth industries.
CDEC is a premier provider of Qualified Intermediary services for taxpayers seeking to structure tax-deferred like-kind exchanges under Internal Revenue Code Section 1031. CDEC has successfully facilitated more than 8,000 like-kind exchanges in the past decade for taxpayers nationwide. These transactions typically generate customer deposits during the period following the sale of the property until such proceeds are used to purchase a replacement property. During 2018, deposits from CDEC customers averaged in excess of $1 billion. Founded in 1989, CDEC was acquired by Prairie Capital, Financial Investments Corporation, Mary Cunningham, Hill Hammock and other members of management in 2007 from ABN AMRO Bank.
The Prairie investment thesis focused on assisting management to transform CDEC from a wholly-owned subsidiary into a high-performing independent company with a leading market position. Prairie provided patient capital and support for the team to withstand the challenging environment created by the 2008 recession, and worked with management to successfully position the Company as the industry leader.