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Firm Overview
Investment Philosophy
The distinguishing and most important element of American Industrial Partners' successful investment performance has been the collaborative application of operating, technical and financial experience when identifying investment opportunities and designing operating strategies for portfolio companies. The result is an ability to combine the judgment and value creation capabilities of a strategic buyer with the execution capabilities of an experienced financial buyer.
American Industrial Partners seeks investments in businesses where both the operating risks and opportunities are familiar to the Firm's partners. In particular, the Firm pursues businesses which enjoy protected competitive positions, proprietary capabilities or leading market shares, yet have the potential for significant value enhancement through operating improvements, technological investments, global marketing and sourcing, or add-on investments.
American Industrial Partners is committed to supporting talented management teams in building their businesses. The Firm does not play a role in the daily operations of portfolio companies, but rather forms a true operating partnership with management teams. By providing sound financial support and access to the Firm's resources, American Industrial Partners enables management to focus on business fundamentals and create long term value.
Expertise
The Partners and Advisory Board members of American Industrial Partners have diverse backgrounds with complementary operating, technical and financial expertise. AIP professionals have individual expertise in operating and technical areas including: quality systems, product development and planning, engineering effectiveness, global manufacturing and procurement, equipment effectiveness, plant consolidations, ERP implementations and project management.
Through the Firm's portfolio companies, the professionals of AIP also have a vast base of experience in sourcing materials and generating revenues from developing countries. American Industrial Partners has been involved in developing joint ventures in Brazil and India, establishing a manufacturing presence in China and creating a multi-supplier component sourcing capability across Asia and Latin America.
Operating and technical expertise is complemented by financial expertise such as: replacing shared services at newly independent divisions, divesting non-core assets, integrating bolt-on acquisitions, recapitalizations, and public and private debt and equity financings.
Industrial Investment Opportunity
American Industrial Partners focuses exclusively on North American headquartered industrial enterprises, which frequently have existing or potential global markets and procurement opportunities. AIP believes that industrial businesses are attractive because:
- Acquisition candidates are plentiful
- There are common opportunities to implement operating
improvements in a systematic way
- Financial characteristics of industrial companies are
frequently less volatile than other investment categories
- Rapidly developing economies such as China and India are
undergoing an industrial recapitalization that often serves as a
significant revenue driver or low cost sourcing opportunity for
targeted U.S. industrial companies
- The Firm’s specialized knowledge of the industrial sector and its business models provides a competitive advantage in making and managing successful acquisitions
