Industrial Opportunity Partners has closed its fourth fund, Industrial Opportunity Partners IV LP, with $650 million of capital. Fund IV closed at its hard cap and above its original target of $600 million.
Limited partners in IOP’s new fund include university endowments, insurance companies, pension plans, and funds-of-funds.
“We appreciate the continued support and partnership of our investors and, as always, we will strive to be good stewards of their capital,” said Kenneth Tallering, a senior managing director of IOP. “We are confident that the coming years will bring significant opportunity for the IOP team to build value in our companies.”
IOP focuses on acquiring middle-market manufacturing and value-added distribution businesses, typically with revenues between $50 million and $500 million. Specific areas of interest include transportation, construction, agriculture, building products, and packaging. IOP targets businesses with strong product, customer, and market positions and provides both management and operational resources to support sales growth and operational improvements.
“As we embark on our fourth fund, we believe IOP’s consistent, operations-focused approach to investing and the firm’s ability to provide significant resources to our companies continues to resonate with investors,” said Robert Vedra, a senior managing director of IOP. “Our disciplined, focused investing style allows us to identify attractive opportunities in a variety of situations and market conditions.”
Fund IV has already acquired two platforms with the buys of N.B. Handy Company, a Virginia-based building products distributor specializing in HVAC products, architectural metal roofing and machinery (May 2022); and Viaflex (formerly Raven Engineered Films), a South Dakota-based provider of polymer films and sheeting used in agriculture, construction, geomembranes, and industrial applications. IOP acquired Viaflex in April 2022 from Raven Industries which had been acquired by publicly traded CNH Industrial in November 2021.
IOP, headquartered in the Chicago suburb of Evanston, was founded in 2005 and the firm closed its first fund in 2007. Over the past 15 years, IOP has closed 33 platform investments and more than 25 add-on investments.
PJT Partners was the placement agent for Fund IV and Sidley Austin provided legal services.
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