American Industrial Partners: A Catalyst for Industrial Growth and Innovation

Introduction

American Industrial Partners (AIP) is a leading private equity firm focused exclusively on the industrial sector. With over $6.0 billion of assets under management, AIP invests in businesses that are undergoing transformation or facing industry challenges. Through its strategic guidance, operational expertise, and access to capital, AIP empowers its portfolio companies to drive growth, enhance profitability, and lead the industrial landscape.

History and Investment Strategy

Founded in 1997, AIP has a proven track record of success across multiple industrial sub-sectors, including manufacturing, distribution, energy, and transportation. The firm's investment strategy is built on a deep understanding of industry dynamics, a focus on partnering with experienced management teams, and a commitment to driving operational excellence.

AIP typically invests in companies with the following characteristics:

• Annual revenue between $50 million and $500 million
• Proven track record of profitability
• Opportunities for significant growth
• Underperforming or underutilized assets

Operational Expertise and Value Creation

AIP distinguishes itself from other private equity firms through its extensive operational expertise. The firm's team of industry veterans and former executives provides hands-on guidance to portfolio companies, leveraging their deep knowledge of best practices to improve operational efficiency, optimize supply chains, and implement growth initiatives.

AIP focuses on the following key areas of value creation:

• Revenue Enhancement: Identifying and capturing new revenue streams, introducing innovative products or services, and expanding into new markets.
• Margin Improvement: Reducing costs through operational optimization, procurement efficiencies, and productivity enhancements.
• Growth Acceleration: Investing in capital projects, acquisitions, or technology upgrades to drive growth and scalability.

Portfolio Companies and Success Stories

Over the past 25 years, AIP has invested in numerous industrial businesses, partnering with management teams to transform operations and achieve remarkable success. Some notable examples include:

• Belcan: A global engineering and technical services provider, AIP invested in Belcan in 2004 and helped the company grow revenue by over 300% through strategic acquisitions and operational improvements.
• Arconic: A leading manufacturer of aluminum products, AIP acquired Arconic's rolled products business in 2020 and implemented a comprehensive restructuring plan that resulted in a significant improvement in profitability.
• Power Partners: A provider of critical power solutions, AIP partnered with Power Partners in 2015 and expanded the company's service offerings, increasing revenue by over 60%.

The Importance of Private Equity in Industrial Growth

Private equity plays a crucial role in fueling growth and innovation in the industrial sector. By providing capital, operational expertise, and strategic guidance, firms such as AIP empower businesses to:

• Access capital for expansion and modernization
• Implement best practices and optimize operations
• Acquire or divest businesses to accelerate growth
• Foster a culture of innovation and competitiveness

Benefits of Partnering with AIP

Companies that partner with AIP benefit from a wide range of advantages, including:

• Deep Industry Expertise: AIP's team has a wealth of experience in the industrial sector, providing valuable insights and guidance.
• Operational Support: AIP's hands-on approach helps businesses implement best practices and achieve operational excellence.
• Financial Resources: AIP provides access to capital for growth initiatives, acquisitions, and other strategic investments.
• Strategic Guidance: AIP's team collaborates with management to develop and execute growth plans, identifying opportunities and mitigating risks.
• Access to Networks: AIP has a vast network of industry contacts, facilitating business development and potential partnerships.

Pros and Cons of Private Equity Investment

Pros:

• Access to capital and financial resources
• Operational expertise and support
• Strategic guidance and industry insights
• Potential for significant returns
• Flexibility and alignment of interests

Cons:

• Diluted ownership and control
• Pressure to meet performance targets
• Potential for conflicts of interest
• Fees and carried interest

Call to Action

If you are an industrial business looking for a strategic partner to drive growth and innovation, we encourage you to contact American Industrial Partners. With our commitment to operational excellence, deep industry expertise, and access to capital, we are confident that we can help your business achieve its full potential.

Tables

Table 1: AIP Investment Strategy

Table 2: AIP Value Creation Strategy

Table 3: AIP Portfolio and Success Stories