INVESTMENT PHILOSOPHY
AIP’s Investment Philosophy: Lead by serving
OVERVIEW
American Industrial Partners is committed to supporting talented management teams in building their businesses. AIP generally does not play a role in the daily operations of portfolio companies, but rather forms a true operating partnership with management. By providing sound financial support and access to the Firm’s engineering and operating resources, American Industrial Partners enables management to more efficiently focus on business fundamentals and create long-term value.
AIP buys companies where it believes it can significantly improve a target’s performance through the implementation of an Operating Agenda to grow earnings and value – a ‘business building’ strategy. Prior to transacting, the AIP team develops and implements the Operating Agenda in partnership with management, which includes a series of specific commercial and operational initiatives upon which a detailed action plan is built, to be implemented in collaboration with management in order to significantly increase EBITDA. Based on the experience of the AIP team, AIP expects to provide leadership in such areas as:
AIP Operating Agenda Toolkit
Global sourcing | Plant greenfield or consolidation and low cost country manufacturing initiatives |
Product development | Engineering effectiveness |
Lean manufacturing | Information technology |
Aftermarket opportunities | Add-on acquisitions and divestitures |
Operating expense rationalization | Product management |
Quality systems implementations | Warranty cost reduction |
Equipment modernization | Identification and timing of exit |
Carve-out to stand alone business | Environmental, Social, & Governance Factors |
OUR EXPERTISE
We seek to leverage our operational experience to pursue transactions where others fail to perceive investment opportunity or lack the ability to transact or create value. AIP has deep experience executing complex multi-national corporate carve outs and investing “up and down” the capital structure based on transaction characteristics. 70% of AIP’s investments to date have been corporate carve outs or public-to-private transactions. In our opinion, AIP’s reputation of speed, certainty and seamless execution makes the firm a preferred counterparty for corporate sellers looking to divest non-core assets.