Blackstone Group (BX, Financial) is reportedly in advanced negotiations to acquire a minority stake in American Industrial Partners (AIP). Although the deal has not been finalized, an announcement could be made in the coming weeks. Specific terms of the transaction have yet to be disclosed.
American Industrial Partners, headquartered in New York, specializes in private equity investments in mid-market industrial companies. Earlier this month, it completed the acquisition of AGCO Corporation's (AGCO) grain and protein division. AIP manages assets worth approximately $16 billion and is led by General Partners Kim Marvin, John Becker, Dino Cusumano, along with CIO Toni Rinnevaara and COO Justin Fish.
The firm, founded in 1988, has invested in companies such as Boart Longyear, Molycop, and Austin Powder. Last year, AIP raised $5 billion for its eighth fund, American Industrial Partners Capital Fund VIII. Alternative asset management firms increasingly sell minority stakes to gain liquidity, with founders often using the proceeds to support new strategies or fund investments.
