Commercial & Industrial Products and Services


We invest in a wide range of commercial and industrial sectors and business models. We look for companies with value-added products or services that are difficult for competitors to replicate, provide a clear ROI-based value proposition for their customers, and that are led by outstanding management teams, all of which result in strong margins indicative of a truly differentiated business.

Within the broader commercial and industrial products industry, we emphasize several sub-sectors we find particularly attractive:


ENGINEERED INDUSTRIAL PRODUCTS

Sub-sectors of particular interest include:

  • Flow control, process and motion control, niche / specialty small equipment, professional tools, engineered components (e.g. sensors, switches, etc.), automation controls, environmental technologies, test and measurement devices and instrumentation, and specialty building products.

Company attributes we’re looking for:

  • Strong and defensible market positions in high-growth niches
  • High degree of engineering content in the product
  • Product performance more important than price
  • Consultative sales approach; knowledge of customer application is important
  • Intellectual property, such as patents, trade secrets or institutional knowledge
  • Gross margins in excess of 35 – 40% and EBITDA margins in excess of 10%
  • Capital efficient business models

Representative investments:

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SPECIALTY DISTRIBUTION

Sub-sectors of particular interest include:

  • Tools and supplies for specialty professional contractors, test and instrumentation, industrial and commercial automation and access controls, power transmission and motion control, consumable products, commercial and light industrial equipment, engineered components (e.g. specialty hardware, sensors), and aftermarket parts and accessories.

Company attributes we’re looking for:

  • Identifiable source of differentiation
  • Deep product assortments in focused categories
  • Highly knowledgeable (often technical) sales force
  • Robust use of data to drive efficiencies and close customer relationships
  • Strong market share in a fragmented niche
  • Opportunity to drive value through complementary acquisitions
  • Gross margins in excess of 30% and/or EBITDA margins in excess of 10%
  • High returns on invested capital

Representative investments:

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