CORE Industrial Partners has raised $887 million of capital through the closing of CORE Industrial Partners Fund III LP (Fund III) with $685 million of capital, and the closing of a new offering, CORE Industrial Services Fund I LP (Service Fund I), with $202 million of capital. Both funds closed above their targets.
Limited partners in both funds include endowments, foundations, insurance companies, public and corporate pensions, global asset managers, investment advisers and family offices across North America and Europe.
“We are extremely proud and humbled by the strong interest and support from both existing and new investors and are grateful for the trust they have shown in us,” said John May, the managing partner of Chicago-based CORE. “The unwavering support for both fund strategies highlights our dedication to an industrial sector we believe is experiencing significant long-term tailwinds. We remain committed to taking advantage of these opportunities and working hard for our limited partners.”
Fund III will continue CORE’s existing flagship strategy of making control equity investments of up to $100 million in North America-based companies with revenues of up to $200 million and EBITDA of up to $20 million. Sectors of interest include a range of specialty verticals within the manufacturing and industrial technology sectors.
CORE’s new services strategy is backed by Services Fund I and will invest in the fragmented industrial services sector that, according to CORE, is experiencing strong growth due to reshoring and proliferation of advanced technologies with the adoption of Industry 4.0 applications in North America. Industry 4.0 – commonly referred to as the fourth industrial revolution – refers to the current trend of automation and data exchange in manufacturing technologies. The goal of Industry 4.0 is the creation of “smart factories” that utilize cyber-physical systems, the Internet of things, cloud computing and cognitive computing.
Service sectors of specific interest for CORE include distribution, equipment services, environmental services, facility services, and infrastructure services.
A recent transaction closed by CORE is the January 2024 acquisition of Aviation Concepts, a Florida-based distributor of nose-to-tail used serviceable material (USM) aircraft parts and components for a variety of aircraft fleets. USM parts are previously used aircraft parts – engines, avionics, and more – that have been inspected, tested, and certified for reuse. These parts must meet strict safety standards set by aviation authorities including the FAA.
Aviation Concepts’ USM products include avionics and instruments, rotable components, actuation systems, hydraulics, landing gear and brake systems, engine accessories, flight control surfaces, and auxiliary power units that are sold to more than 500 customers including commercial and freight airlines, maintenance, repair and overhaul organizations and other aerospace components distributors.
Harris Williams Private Capital Advisory was the placement agent for the raising of both Fund III and Service Fund I, and Kirkland & Ellis provided legal services.
© 2024 Private Equity Professional | February 21, 2024
