The transportation sector within the private equity world is an interesting one.
While not the most technical of sectors (with interest from many generalist investors), it’s still complicated enough to form the investment thesis of specialized firms.
Part of the attraction is transportation’s overall enormity – a $500 billion market in the US alone. Combine this with high fragmentation and it’s easy to see why some firms need not look elsewhere for opportunities.
Three of the more well known transport focused investment groups include;
Greenbriar Equity Group is a specialized pe firm focused on investing in the global transportation industry. Specific areas of interest include traditional carriers, (such as railroads, cruise lines, airlines, air freight, shipping, and trucking), as well as ancillary manufacturers and service companies that support the transport sector. Greenbriar will consider making majority as well as minority investments through a variety of structures, including leveraged buyouts, recaps, growth capital investments, corporate joint ventures, and privatizations. The Firm targets equity commitments of $50 to $150 million per transaction. Greenbriar was formed in 1999 and is based in Rye, New York.
JF Lehman is a specialist firm that targets investments in the defense, aerospace, and maritime industries. JF Lehman looks for lower-middle market company opportunities with established products – but that may not be realizing their full potential. The Firm will only consider control based investment situations. JF Lehman was formed in 1992 and has offices in New York, London, and Washington DC.
Transportation Resource Partners (TRP) is a private investment firm that seeks opportunities in growth-oriented manufacturing and service businesses in the transportation industry. Particular areas of interest include specialty manufacturing and assembly, logistics/freight management, value-added distribution/warehousing, dealer services, fleet services, retail services, financial services, outsourcing services, and training. TRP looks for companies valued between $25 and $250 million. TRP was formed in 2001 and is based in Bloomfield Hills, Michigan, with an additional office in Secaucus, New Jersey.