About
History
Investment Philosophy
Investment Strategy
Investment Criteria
Selected Target Industries

Investment Criteria

Types of Targets

In general, Tinicum targets investments in:


  • Private Companies
    • Acquisitions from private sellers
    • Subsidiaries or divisions of public companies
    • Roll-up and business development programs

Industry

We invest opportunistically in a wide variety of industries. We evaluate the attractiveness of industries on an ongoing basis in light of changing market conditions. Industries that are undergoing change or are out of favor are often especially attractive. We have particularly deep experience owning manufacturing businesses with demonstrated competitive advantage—or “franchise” value. In addition, we are interested in acquiring companies that strategically complement businesses in our current portfolio.

Financial Position

Although most of the companies Tinicum invests in are profitable, we will invest in an unprofitable, ostensibly troubled company as long as the current problems are identifiable and addressable and the underlying business fundamentals appear sound. Situations that present the opportunity to create value by improving a company’s operations are especially attractive.

Size

We target an equity investment size of $30 million to $150 million but have made, and will consider, investments outside this range 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 equity gain is substantial. For investments that require larger equity commitments, Tinicum can call on our limited partners and our network of co-investors.

Control

We invest in both controlling interests and minority stakes. If we purchase a minority position, we often will have representation on the company’s board.

Participation of Management

We favor companies run by managers who are willing to invest their capital alongside 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.

Position in Capital Structure

Although historically we have invested most often in equities, we also have experience investing in debt securities and have been active in a number of restructurings, both in and out of bankruptcy.