BACKGROUND

 

Building Industry Partners (BIP) was founded in 2008 to partner with, and provide growth equity capital to, proven building industry business leaders.

During the depths of a historic U.S. housing market correction, most investors avoided the building industry altogether. BIP believed that through a long-term perspective on value and risk, partnerships with proven operators, and disciplined adherence to fundamental investment principles, the building industry represented prudent ground for entrepreneurship and long-term investment.

From its beginnings, BIP has sought to support the strategic visions of building industry entrepreneurs within their segments of expertise, across the residential and commercial building products manufacturing, distribution, and service sectors.

BIP invests its principals’ own capital, as well as that of like-minded investors, including accomplished active and retired building industry entrepreneurs.

Today, BIP is the leading private equity investment firm focused exclusively in the U.S. building industry. Since BIP’s formation in 2008, BIP’s principals have generated weighted-average gross equity returns on investment (ROI) of over 5.0x invested capital and over 30% IRR in building industry investments.

BIP has operations in New York, Boston, and Dallas, and is actively seeking new investment opportunities throughout the U.S.


INVESTMENT PHILOSOPHY

 

Our primary investment tenets include:

  • Culture of Integrity

    We focus on establishing long-term relationships with operators, business owners, and industry leaders built upon respect, honesty, fairness, communication, and collaboration.

  • Segment Focus

    We believe our exclusive building industry focus drives BIP’s competitive advantages in opportunity and talent sourcing, opportunity evaluation, due diligence, and strategy execution. These advantages benefit our portfolio companies’ operating partners, employees, customers, vendor partners, and investors.

  • Operator-First

    We focus on partnering with and supporting the entrepreneurial visions of the building industry’s best and brightest business leaders. Above all else, we invest with exceptional operators with proven track records of high-integrity leadership and equity value creation within their segments of expertise.

  • Alignment of Interests

    In our business partnerships, and in particular with our Operating Partners, we prioritize the alignment of vision and financial interests.

  • Outstanding Businesses

    We seek to invest in strong, well-run, growing, and profitable platform businesses at prudent valuations. Foremost, we aim to preserve those businesses’ success drivers and successful legacies. In partnership with management, we seek to identify and pursue compelling opportunities for further organic and acquisition-related growth.

  • Conservative Macro Perspective

    We believe in the long-run strength of the U.S. economy, and in turn the U.S. residential and commercial construction markets. However, we have respect for market cycles. As a result, we capitalize businesses conservatively. Furthermore, we seek to build businesses that can not only endure, but also find opportunity, during market downturns.

  • Growth Mindset

    In an industry that often attracts opportunistic turnaround and “distressed” investors, we bring a growth-oriented and longer-term mindset. We’re committed to fueling organic and acquisition-related growth, resulting in opportunity for our businesses, employees, and other stakeholders. Since 2008, BIP has been part of forming and building a number of the fastest-growing independent companies in the building industry.

  • Operator Autonomy

    Following an investment, we commit substantial time and resources where our operating partners believe we can best help them. These areas often include capital structure, recruiting, acquisition sourcing and execution, and strategic introductions. However, we are not operationally-intensive investors. We are mindful to provide our management teams the autonomy to do what they do best – lead and build great and enduring businesses.


INVESTMENT CRITERIA

 

Building Industry Partners is actively seeking investment opportunities for both new platform companies and add-on acquisitions. Our investment criteria include:

  • Segments

    Building products manufacturers, distributors, dealers, and specialty construction service companies, serving residential and commercial new construction and remodeling segments

  • Geography

    United States

  • Size

    1. New platform companies: $20 to $250 million in annual sales, or smaller companies with unique growth opportunities
    2. Add-on acquisitions to existing platform companies, with a primary focus currently on:
      1. Lumberyards/Pro Dealers with $10+ million annual sales located in California or the Pacific Northwest
      2. Distributors to fencing contractors with $10+ million annual sales located anywhere in the U.S.
      3. Fencing installation contractors with $10+ million annual sales in select markets nationwide
  • Structure

    We are flexible providers of equity capital, and we are comfortable in both majority and minority ownership positions. We prefer sellers/partners who want to retain a meaningful ownership stake alongside BIP post-transaction, as a means to best ensure the business’ future success.

  • Situation

    We evaluate investment opportunities in a variety of situations. These include, but are not limited to:

    1. Owner-operator seeking partial liquidity or ownership transition as part of succession planning or retirement
    2. Owner-operator seeking capital for geographic expansion, products or service expansion, and/or strategic acquisitions
    3. Proven operators seeking to build a business within their niche of expertise, through acquisition of a platform company and execution of organic and/or “buy & build” growth strategies

Contact

 

BIP is actively seeking opportunities to sponsor the building products industry’s greatest operating talents in realizing their entrepreneurial visions. If you are a business owner considering a transaction, or are interested in understanding potential succession or capitalization options, please do not hesitate to contact us.