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Industrial Opportunity Partners
Industrial Opportunity Partners launched in 2005 when Ken Tallering and David Macknin — both veterans of middle-market operations — decided to build a...
Industrial Opportunity Partners
Industrial Opportunity Partners launched in 2005 when Ken Tallering and David Macknin — both veterans of middle-market operations — decided to build a private equity firm that would own manufacturers rather than just finance them. The firm's founding thesis held that family-run industrial companies and orphaned corporate divisions often carry strong underlying assets but lack professional management systems, creating a gap that patient, operationally intensive capital could fill. From its Evanston headquarters, IOP has raised three committed funds, with its most recent vehicle closing in 2017. IOP concentrates exclusively on middle-market manufacturing and value-added distribution. The firm acquires companies generating between $30 million and $200 million in revenue, targeting situations where ownership transition, underperformance, or strategic misalignment have depressed value. Portfolio companies span engineered products, specialty components, and industrial services. Confirmed investments include capacity additions at a steel processing business and a specialty vehicle manufacturer. The firm's investment committee reviews potential deals across the Midwest and broader United States, with a preference for businesses rooted in domestic supply chains. IOP calls its model 'operations-centric investing' — a term that reflects the firm's practice of installing its own managing directors as interim CEOs or board-level operators inside portfolio companies. These executives, drawn from IOP's network of former plant managers, division presidents, and manufacturing operators, live inside the businesses during the hold period. In 2017, the firm closed Industrial Opportunity Partners III, its third fund, with $395 million in commitments. The firm's backers include endowments, pension funds, and family offices drawn to the niche strategy. The structural distinction lies in who runs the companies IOP buys. Rather than recruiting outside operators post-close, the firm's own managing directors — many of whom have run factories or industrial divisions — step into operating roles. This blurs the line between sponsor and operator in a way most middle-market firms cannot replicate, making IOP a genuine buy-and-build platform for industrial businesses that need hands-on leadership more than financial engineering.
General information
Firm type
Private Equity
Year founded
2005
AUM
Undisclosed
Location
Region
North America
Country
United States
City
Evanston
Corporate office
Evanston, IL, United States
Principals
David Macknin
Managing Director
Adam Gottlieb
Managing Director
Ken Tallering
Managing Director
Sector focus
Frequently asked questions
What types of companies does Industrial Opportunity Partners acquire?
IOP targets middle-market manufacturing and value-added distribution companies with $30 million to $200 million in annual revenue. These are typically businesses facing ownership transitions, operational underperformance, or corporate divestiture rather than distressed situations. The firm focuses on engineered products, specialty components, and industrial services across the Midwestern and broader US manufacturing base.
Who runs investment decisions at Industrial Opportunity Partners?
Investment decisions sit with IOP's managing directors, a group that includes co-founders Ken Tallering and David Macknin alongside other senior partners with deep operating backgrounds. Unlike most private equity firms, IOP's senior team often steps into operating roles at portfolio companies, blurring the line between deal-maker and manager. The firm's investment committee evaluates transactions with an emphasis on operational turnaround feasibility rather than financial engineering alone.
How does IOP's operational model differ from a standard private equity firm?
IOP calls its approach 'operations-centric investing,' which means the firm's own managing directors and operating partners serve as interim executives inside portfolio companies. These professionals — often former plant managers, division presidents, or manufacturing operators — work on-site to redesign workflows, fix supply chains, and rebuild management teams. Standard PE firms typically retain existing management or hire external operators; IOP embeds its own people from day one.
What is the size of IOP's most recent fund?
Industrial Opportunity Partners closed its third fund, Industrial Opportunity Partners III, with $395 million in commitments in 2017. The firm's limited partners include institutional allocators such as endowments, pension funds, and family offices. IOP has not publicly disclosed a subsequent fund close or updated AUM figures.
Does IOP invest outside the United States?
No. IOP invests exclusively in US-based middle-market manufacturing and distribution businesses, with a concentration in the Midwest. The firm's strategy relies on domestic supply chain dynamics and operational involvement that makes international investing impractical for its hands-on model.
How long does IOP typically hold a portfolio company?
IOP targets three- to seven-year hold periods, reflecting the time required to execute operational turnarounds rather than financial restructurings. The firm typically installs its own operating executives during the early hold period and exits when the business has reached operational stability and improved financial performance.
Does IOP invest in industries outside manufacturing?
IOP focuses exclusively on manufacturing and value-added distribution. It does not invest in technology, healthcare, financial services, or consumer goods. The firm explicitly avoids sectors where its operational model — deploying manufacturing-experienced executives into portfolio companies — would not apply.
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