American Industrial Partners (AIP) has announced a strategic minority investment from Blackstone GP Stakes, a division of Blackstone that focuses on long-term investments in leading private equity firms. This partnership aims to leverage Blackstone's extensive network and resources to enhance revenue growth and cost efficiencies for AIP's portfolio companies.

Kim Marvin, a partner at AIP, expressed optimism about the collaboration, highlighting Blackstone's significant presence in various industries relevant to AIP's investments. Ward Young, Chief Investment Officer for GP Stakes at Blackstone, emphasized the alignment of AIP's capabilities with Blackstone's investment strategy, noting AIP's strong track record in the industrial sector.

The investment will facilitate the retirement of an AIP partner and will be reinvested into AIP's funds. AIP recently closed its eighth fund, raising $5 billion in commitments, and currently manages approximately $17 billion in assets. The firm focuses on industrial businesses across diverse sectors, including aerospace, automotive, and logistics, aiming to generate strong returns through strategic management partnerships.

The financial terms of the investment were not disclosed, but Evercore acted as financial advisor, while Kirkland & Ellis LLP and Simpson Thacher & Bartlett LLP provided legal counsel to AIP. Fried Frank served as legal counsel for Blackstone.

AIP's portfolio companies collectively generate around $26 billion in annual revenues and employ approximately 74,000 people as of September 30, 2024. This investment from Blackstone is expected to further strengthen AIP's position in the industrial investment landscape.