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 with a long-term perspective to value and risk, partnerships with proven operators and disciplined adherence to fundamental investment principles, the building industry represented fertile ground for entrepreneurship and long-term investment.

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

BIP invests its principals’ own capital, as well as that of a small number 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. BIP’s principals have generated weighted-average gross equity returns (ROI) for their limited partner investors of over 5.0x invested capital and over 35% IRR in building industry investments since BIP’s formation in 2008.

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 honesty, fairness, and open communication.

Segment Focus

We believe our exclusive building industry focus drives our Firm’s competitive advantages across deal and talent sourcing, opportunity evaluation and diligence, and strategy execution, which 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 in exceptional people 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 seek to align vision and financial interests.

Outstanding Businesses

We look to invest in strong, well-run, growing and profitable platform businesses at fair valuations. In turn, we look to continue those businesses’ successful legacies and identify and pursue 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 and seek to build businesses that can endure, and find opportunity, during market downturns.

Growth Mindset

In an industry that often attracts opportunistic turnaround and “distressed” investors, we bring a growth-oriented 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 we believe we can best help our operating partners. These areas often include capital structure, recruiting, acquisition sourcing & 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, drawing on their talents and longstanding experience.


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:

  • Lumberyards / Pro Dealers with $10+ million annual sales located in California or the Pacific Northwest

  • Distributors to fencing contractors with $10+ million annual sales located anywhere in the U.S.

  • Fencing installation contractors with $10+ million annual sales in select markets nationwide

Structure
We are flexible providers of either preferred or common equity capital, and we are comfortable in either a majority or minority ownership role depending on the circumstances. We typically seek sellers / partners who are willing to own a meaningful ongoing equity stake alongside BIP following a transaction, as a means to best align interests.

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 growth geographically, expansion of products or services, or to acquire a competitor
  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 achieving their entrepreneurial visions. If you are a business owner considering a transaction, or interested in understanding potential options, please do not hesitate to contact us.