Types of Targets
In general, Tinicum targets the following types of investments:
- private companies
- subsidiaries or divisions of public companies
- public companies (minority stakes or, where available, controlling interests)
- acquisition programs designed and executed by industry experts
Tinicum invests opportunistically in a wide variety of industries. We evaluate the attractiveness of industries on an ongoing basis in light of changing market conditions. Tinicum tends to focus on industries undergoing change or that are otherwise out of favor. Tinicum is particularly interested in, and has experience evaluating and owning, manufacturing businesses with industrial “franchises.” A list of specific industries that currently are of particular interest to us can be found in the Industry Priorities page.
We are not strictly interested in companies that are currently profitable. We will invest in an ostensibly troubled company as long as the current problems are identifiable and the company’s business fundamentals are sound. We will invest in debt or equity of such companies.
Opportunities for Follow-On Investment
Tinicum favors businesses that offer opportunities to expand profitably by additional investment in the business and/or by acquisition within the same or a related industry.
Tinicum targets an equity investment size of $25 million to $75 million, but has made and will consider smaller or larger investments on a case-by-case basis. We will consider smaller investments as part of a broader program of investing in a particular industry, or where the potential rewards are compelling given the risks. For investments that require larger equity commitments, Tinicum can call on our limited partners and our network of other co-investors who often follow our lead.
Tinicum invests in both controlling interests and minority stakes. If Tinicum purchases a minority position, we often will have representation on the company’s board.
Participation of Management
Tinicum favors companies run by managers who are willing to invest their capital along with ours. In addition, in private transactions, we always offer management an opportunity to share in increases in equity value through stock options or other forms of equity incentives.