Investment Philosophy
Investment Strategy
Investment Criteria
Selected Target Industries

Investment Strategy

Pursue Proprietary Ideas

We search for investments using proactive processes driven principally by ideas we generate, not what others happen to be selling at the moment. We typically focus on industries that have favorable long-term dynamics or are out of favor. We use our internally-developed investment themes to identify attractive industry segments, investigate potential niches for investment and generate proprietary opportunities.

Focus on Strength of the Business, Not on Quick Returns

We prefer to invest in businesses with good market positions and capable management. We favor operating strategies that preserve what is successful about a business while targeting opportunities for improvement and growth.

We are more concerned with the long-term performance of our businesses than with simply boosting near-term investment returns. We avoid encumbering privately-held portfolio companies with onerous financial obligations (such as management fees or excessive financial leverage) that might compromise the long-term health of the business.

Add Value to Portfolio Companies

Tinicum’s staff has a long history of investing in a wide variety of industries and includes professionals with decades of experience running businesses. Both co-investors and managers of the businesses we invest in find our experience strengthens teams and increases the potential for value creation. We also offer access to our network of relationships, which includes acquisition targets, new customers and suppliers, management personnel, investment banks and lenders.

The strong financial backing we provide facilitates an active and patient pursuit of follow-on investments that should strengthen a portfolio company’s growth prospects or competitive position. We are committed to improving our companies through prudent, consistent investment in people, new products, capital expenditures and strategic acquisitions.

Structure Transactions Flexibly

We structure transactions to accommodate the unique circumstances of private sellers, public companies and management teams.

In private transactions, we have the freedom to allow sellers to divest completely or retain a share of their companies, and we welcome sellers’ continued involvement in the business when appropriate. We have the ability to close transactions expeditiously without financing contingencies, providing a higher degree of certainty of closing.

We have experience building sizable positions in publicly-traded companies in a number of different ways. Our flexible approach to the public markets has included purchasing securities in the open market, structuring convertible preferred securities, underwriting equity and debt rights offerings, providing equity as part of a restructuring, exchanging debt for equity, buying blocks of stock from founding or other large shareholders. We also have experience acquiring divested business units and taking public companies private.

We believe that management should always have the opportunity to earn an equity interest and to co-invest, and we offer these incentives in every situation we control. When appropriate, management and other investment partners also have the option of obtaining liquidity in the event their investment time horizons are shorter than ours.

Move Quickly and Decisively

We assess investment opportunities quickly and with strict confidentiality. We can negotiate terms, complete due diligence and close transactions rapidly, often without third-party financing.