#United States #Houston #Private Equity #Allied Industrial #Fund I

Allied Industrial Partners Achieves Milestone with Inaugural Fund Close

Allied Industrial Partners LLC, a private equity firm headquartered in Texas, has marked an important milestone with the completion of its first fundraising effort, closing its oversubscribed inaugural fund at $300 million. This significant achievement highlights the firm’s robust growth, now surpassing $1 billion in assets under management (AUM) within only six years of its inception in 2019.

Meeting Investor Demand

The inaugural fund, named Allied Industrial Partners I-A and I-B LP, was initially targeted at raising $250 million, but due to overwhelming investor interest, it reached its hard cap of $300 million. This achievement signifies not only the trust and confidence investors have in Allied but also the firm's commitment to delivering value through capital deployment in high-growth sectors. Notably, over 10% of Fund I's capital was committed by Allied's senior management, illustrating their alignment with the investors’ interests and reinforcing a strong commitment to shared success.

Strategies For Operational Improvement

Co-founders and Managing Partners Bradford Rossi and Philip Wright emphasized that Allied was built on the foundation of leveraging deep operational expertise to enhance value in industrial businesses. With Fund I, the firm aims to accelerate its strategy of implementing operational improvements to create sustainable and resilient platforms across various industrial sectors.

As of now, Fund I is projected to have over 70% of its capital fully deployed by the end of 2025, a sign of the firm’s proactive approach in investing and reinvesting into the industrial market. The firm has already completed several significant investments inclusive of seven platforms and 30 add-ons, engaging with diverse sectors ranging from environmental services to critical infrastructure.

Investing in Diverse Industrial Sectors

Among its noted investments are:

• - Dovetail Infrastructure Services: A prominent operator focused on sustainable water infrastructure projects (exited in October 2024).
• - CES Power: An innovative provider of eco-friendly mobile power solutions.
• - Waste Eliminator: A garbage management firm dedicated to providing sustainable waste and recycling solutions.
• - Celebrity Coaches: A leader in transportation and logistics for live entertainment events across the United States, among others.

These companies highlight Allied's commitment to investing in forward-thinking, environmentally responsible businesses that reflect its operational enhancement philosophy.

The Future of Allied Industrial Partners

Rossi and Wright reiterated their appreciation for the enduring support from their investors, stating, "Over the past six years, we have built Allied into a firm that is deeply engaged with its portfolio companies and uniquely positioned to create lasting value." They also expressed enthusiasm for leveraging the new capital to explore and scale future investment opportunities in the industrial landscape.

Houlihan Lokey acted as the exclusive placement agent for Allied’s Fund I, while Kirkland & Ellis LLP provided legal counsel throughout the process. This partnership underscores the firm’s commitment to transparency and professionalism as it enhances its portfolio companies.

Overall, Allied Industrial Partners aims to continue identifying and scaling what it perceives as the next generation of industrial leaders, working in close partnership with its management teams to ensure long-term success in the competitive landscape of private equity investments.