American Industrial Partners Announces Strategic Investment from Blackstone
Deal News | Jan 09, 2025 | Blackstone
American Industrial Partners (AIP) has announced a strategic minority investment from Blackstone GP Stakes, a division of Blackstone focusing on long-term minority investments in leading private equity firms. Blackstone, with over a trillion dollars in assets, is recognized for investing in businesses that align with AIP's market-driven industrial investments. This partnership is expected to unlock revenue growth and cost-saving opportunities for AIP’s portfolio companies, according to AIP Partner Kim Marvin. Blackstone's Chief Investment Officer for GP Stakes, Ward Young, emphasizes the alignment with AIP as part of Blackstone's strategy of partnering with top-performing private equity managers. The deal will aid the retirement of an AIP partner and reinvestment into AIP's funds, continuing AIP’s strategy with its eighth fund, which closed with $5 billion in commitments in 2023. Although the specific terms were not disclosed, Evercore served as the financial advisor, while Kirkland & Ellis LLP and Simpson Thacher & Bartlett LLP provided legal counsel to AIP; Fried Frank advised Blackstone.
Sectors
- Private Equity
- Industrial Sector
Geography
- United States – The main entities involved, AIP and Blackstone, are both based in the United States. The advisory firms Evercore, Kirkland & Ellis LLP, Simpson Thacher & Bartlett LLP, and Fried Frank are also based there.
Industry
- Private Equity – The article discusses the involvement of Blackstone and AIP, both significant entities within the private equity industry.
- Industrial Sector – AIP is deeply engaged in the industrial sector, with investments across aerospace, defense, automotive, logistics, and other industrial markets.
Financials
- $5 billion – The amount closed by AIP for its eighth fund, American Industrial Partners Capital Fund VIII, L.P., in 2023.
- $17 billion – The total assets under management by American Industrial Partners.
- Over $1 trillion – The total assets under management by Blackstone.
- $82 billion – The amount of investor capital under management by Blackstone Strategic Partners.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| American Industrial Partners | Target Company | Company | A private equity firm focused on investments in industrial businesses with approximately $17 billion under management. |
| Blackstone GP Stakes | Investor | Company | A division of Blackstone that focuses on minority investments in leading private equity firms. |
| Kim Marvin | Partner | Person | A Partner at American Industrial Partners who commented on the strategic significance of the investment. |
| Ward Young | Chief Investment Officer | Person | Chief Investment Officer for GP Stakes at Blackstone who spoke about the alignment of the investment. |
| Josh Blaine | Head of GP Stakes | Person | Head of GP Stakes at Blackstone who commented on the partnership's future support for AIP. |
| Evercore | Financial Advisor | Company | Served as the financial advisor to American Industrial Partners for the investment transaction. |
| Kirkland & Ellis LLP | Legal Advisor | Company | Provided legal counsel to American Industrial Partners for the transaction. |
| Simpson Thacher & Bartlett LLP | Legal Advisor | Company | Provided legal counsel to American Industrial Partners for the transaction. |
| Fried Frank | Legal Advisor | Company | Provided legal counsel to Blackstone for the transaction. |