HOUSTON, Oct. 12, 2023 /CNW/ — LDR Growth Partners LP (“LDR”), a team-oriented private equity firm, is pleased to announce the launch and initial closing of LDR Growth Partners Fund 1 LP (the “American Manufacturing Fund”), a diversified fund that continues LDR’s investment thesis of acquiring and scaling industrial manufacturing businesses across North America. In addition to traditional private equity fund dynamics, the American Manufacturing Fund is uniquely performance-based and leverages LDR’s target approach to annual dividends for portfolio assets.
The successful fund launch and strong limited partner support is attributable to LDR’s track record in the sector, the macro environment around supply-chain diversity as the industry has a renewed focus on near-shoring, re-shoring and onshoring, and LDR’s multi-phased approach to asset management and leadership specific to companies within the lower-middle market. The American Manufacturing Fund builds on LDR’s thesis across four manufacturing acquisitions in recent years. With the American Manufacturing Fund, LDR will continue to deploy capital in family and founder-owned North American industrial manufacturing businesses that maintain a defensible market position, carry annual profits of between $2-10 million, and possess identifiable potential for scale.
The American Manufacturing Fund comes at a time when the macro industry is experiencing generational shifts. Geopolitical tension affecting international trade and supply-chain constraints, and backlogs during the Global Pandemic, have together fueled a sentiment of optimism towards domestic American manufacturing. According to Bloomberg, large American firms have more than doubled their public mentions about the “nearshoring,” “reshoring,” and “onshoring” of manufacturing and have announced $516 billion in manufacturing investment in the past three years, in parallel with billions of dollars in government subsidies and tax credits for manufacturing and infrastructure related spending.Story continues
As manufacturing is one of the largest sectors of labor opportunity in the United States, all this momentum touches the lives of many families across America. In LDR’s definition of the lower-middle market for industrial manufacturing companies (those with 20-100 employees), 2.86 million total workers are employed across more than 60,000 firms in an overall industry that comprises 12 percent of U.S. GDP. With 47 percent of U.S. manufacturing firms located in seven states, the opportunity for impact in the global manufacturing industry exists within relatively small geographic boundaries. LDR views these regions and the manufacturing companies therein as critical to the backbone of the American economy as they provide vital jobs and direct investment to communities across the nation, many of which are in rural or otherwise remote areas.
LDR’s investment thesis begins with leadership, team dynamics, and robust operational systems and then seeks to maximize growth through reinvestment while prioritizing quality products and exceptional customer service. “We like to partner with stellar companies that have spent decades building quality companies and products each respected in their industry sub-sector,” said Ryan P. Martin, Partner at LDR Growth Partners. “We’re a people-focused investment team that prioritizes customer value and excels at the intersection of team-leadership, business prowess, and companies with solid infrastructure ripe for stable and cost-efficient growth.”
The American Manufacturing Fund represents another evolution for LDR as it has actively invested in the space in recent years. LDR boasts of a loyal and expansive network of trusted and experienced professionals to solve the right problems efficiently. “Our team embodies a multifaceted identity more than typical investors; among our leadership team are seasoned U.S. combat veterans, experienced business leaders, and innovative entrepreneurs who leverage collective experience and core values to advance North American-owned industrial manufacturing,” said JD Dolan, Partner at LDR Growth Partners. “We draw strength from our loyal limited partners and remain advantageously positioned to progress along our investment thesis as a highly collaborative and cross-functional ‘Team of Teams.’
About LDR Growth Partners
LDR Growth Partners LP (“LDR”) is a people-focused investment firm that supports growth-oriented businesses, management teams, and entrepreneurs with equity capital and precision support to scale operations and maximize returns under values of trust, service, creativity, and discipline. LDR is led by a five-person cross-functional leadership team, and was founded in 2011 by U.S. Army Officers, with a common vision for business leadership and the power of building, supporting, and growing exceptional teams while growing the legacies of North American companies over the long term. LDR has built a successful track record of operationally improving companies across numerous sectors and is also the owner of LDR Advisory Partners and LDR Leadership, firms that focus on improving company, employee, and leadership performance.
