We invest in a wide range of industrial products and services.
We look for companies with highly engineered, value-added products or services that are difficult to replicate with a clear, ROI-based value proposition and are led by outstanding management teams.
Specialty Distribution
Our specialty distribution practice seeks to invest in a wide range of distribution models where there is a clear, value-add solution provided to both suppliers and customers in a logistically complex supply chain. Ideal companies will provide a technical solution powered by sales and customer service, an ease to transacting, a tech-enabled digital / e-commerce offering, and are driven by data-informed decision making that results in a strong ROIC.
Sub-sectors of particular interest include:
- Aftermarket parts and accessories
- Engineered components (industrial and commercial automation and access controls)
- Power transmission, flow, process, motion control, test and instrumentation
- Tools and supplies for specialty professional contractors (light equipment, consumable products)
Company attributes we look for:
Identifiable source of differentiation
Deep product assortments in focused categories
Highly knowledgeable, technical sales force
Robust use of data to drive efficiencies and customer relationships
Strong market share in a fragmented niche
Opportunity to drive value via complementary acquisitions
Gross margins > 30% and/or EBITDA margins >10%
High returns on invested capital
Engineered Products
Our Engineered Products practice seeks to invest in a wide range of products with a B2B and B2G (Government) customer base. Ideal companies will provide highly engineered, mission critical products that are difficult to replicate (knowhow or IP), a clear ROI for their customers, and maintain outstanding teams.
Product categories, or end markets, of particular interest include:
- Aerospace and Defense
- Engineered or proprietary components, OEM replacement parts
- Flow, process, motion and automation controls
- Advanced building products
Company attributes we look for:
Defensible market positions in growing niches
Product performance more important than price
Intellectual property: patents, trade secrets or know-how
High degree of engineering content in the product
Gross margins above 30% and EBITDA margins above 10%
Capital efficient business model
Industrial Services
Our Industrial Services practice seeks to invest in a wide range of service-focused businesses with a B2B and B2G (Government) customer base. Ideal companies will provide specialized capabilities that serve a critical purpose and provide a clear ROI for customers, a history of recurring and/or re-occurring revenues and maintain outstanding teams.
Verticals of particular interest include:
- Infrastructure services (e.g., transmission and distribution, power generation, water and wastewater, transportation infrastructure, telecommunications)
- Facility services (e.g., electrical mechanical contractors, HVACR and plumbing contractors, specialty MRO contractors)
- Environmental services (e.g., EH&S compliance, remediation services, hazardous waste disposal, resource recovery)
- Other specialty industrial services (e.g., testing, inspection, certification & compliance, and MRO)
Company attributes we look for:
Serves a critical function and/or has a high cost of non-performance
Specialized labor force with difficult-to-replicate capabilities
High level of recurring and/or re-occurring revenue
Scalable business model with opportunity, for complementary acquisitions
Gross margins >25% and EBITDA margins >10%.
Capital efficient business model
