Operations-focused private equity firm Industrial Opportunity Partners, has held the closing of its third fund, Industrial Opportunity Partners III, with USD450 million of committed capital.
IOP held a single close on 30 June, 2017, achieving its hard cap for Fund III after a three-month fundraising process, and exceeding its original target of USD400 million. Investors include university endowments, foundations, insurance companies, pension plans, and funds-of-funds.
Founded in 2005, IOP focuses on acquiring and overseeing middle-market manufacturing and value-added distribution businesses with revenues typically between USD30 million and USD350 million. IOP primarily targets North American businesses with strong product, customer, and market positions.
IOP is differentiated by its operating resources led by its dedicated, full-time Board of Operating Principals – a cadre of executives, each with over 25 years of experience, who guide and assist management teams in stabilising, enhancing, and growing the value of their businesses.
“We are pleased to have completed raising Fund III so quickly and with such strong demand,” says Kenneth M Tallering, Senior Managing Director of IOP. “We appreciate the support and confidence of our investors, and we look forward to the opportunity to create value in our Fund III portfolio companies.”
“We believe the talents of our team continue to resonate with our investors and enable IOP to pursue and create value in a broad spectrum of investment situations,” says IOP Senior Managing Director Robert M Vedra. “Further, we believe that IOP’s Board of Operating Principals has been a key factor in creating value in our portfolio companies and providing consistency in our returns to investors.”
IOP’s inaugural fund, Industrial Opportunity Partners (Fund I), totalled USD185 million of committed capital and was raised in 2006 and 2007. Fund I has completed 11 platform investments, seven add-on acquisitions, and seven realisations. IOP’s second fund, Industrial Opportunity Partners II (Fund II), totalled USD275 million of committed capital and was raised in 2012. Fund II has completed 11 platform investments, two add-on acquisitions and two realisations. The portfolio companies serve a variety of end markets, including transportation, construction, agriculture, building products, packaging, and general industrial.
Park Hill Group LLC and Sidley Austin LLP served as placement agent and legal counsel, respectively, to Fund III.
