Heartland Industrial Partners
Encyclopedia
Heartland Industrial Partners is a private equity
firm focused on industry consolidation
and growth capital
investments in middle-market industrial companies.
The firm, which is based in Stamford, Connecticut
, was founded in 1999 and is no longer actively investing.
David Stockman
, Timothy Leuliette and Daniel Tredwell In 2001, the firm completed fundraising for its first and only private equity fund
with approximately $1.4 billion of investor commitments.
, which was a major investment for the fund that ended in bankruptcy.
On March 26, 2007, federal prosecutors in Manhattan indicted Stockman in "a scheme ... to defraud [Collins & Aikman]'s investors, banks and creditors by manipulating C&A's reported revenues and earnings." At the same time, the Securities and Exchange Commission
brought civil charges against Stockman related to actions he took while CEO of Collins & Aikman. Stockman suffered a personal financial loss, estimated at $13 million, along with losses suffered by as many as 15,000 Collins & Aikman employees worldwide. Stockman said in a statement posted on his law firm's Web site that the company's collapse was the consequence of an industry melt-down, not fraud. In August 2008, a trial date was set but on January 9, 2009, the U.S. Attorney's Office announced that it did not intend to prosecute Stockman in this case.
Other investments in the Heartland portfolio included auto parts suppliers Metaldyne and TriMas as well as Springs Industries, a manufacturer of home furnishings.
Private equity
Private equity, in finance, is an asset class consisting of equity securities in operating companies that are not publicly traded on a stock exchange....
firm focused on industry consolidation
Rollup
A Rollup is a technique used by investors where multiple small companies in the same market are acquired and merged. The principal aim of a rollup is to reduce costs through economies of scale. Rollups also have the effect of increasing the valuation multiples the business can command as it...
and growth capital
Growth capital
Growth capital is a type of private equity investment, most often a minority investment, in relatively mature companies that are looking for capital to expand or restructure operations, enter new markets or finance a significant acquisition without a change of control of the business.Companies...
investments in middle-market industrial companies.
The firm, which is based in Stamford, Connecticut
Stamford, Connecticut
Stamford is a city in Fairfield County, Connecticut, United States. According to the 2010 census, the population of the city is 122,643, making it the fourth largest city in the state and the eighth largest city in New England...
, was founded in 1999 and is no longer actively investing.
History
The firm was founded in 1999 by former Reagan budget directorReagan Administration
The United States presidency of Ronald Reagan, also known as the Reagan administration, was a Republican administration headed by Ronald Reagan from January 20, 1981, to January 20, 1989....
David Stockman
David Stockman
David Alan Stockman is a former U.S. politician and businessman, serving as a Republican U.S. Representative from the state of Michigan and as the Director of the Office of Management and Budget ....
, Timothy Leuliette and Daniel Tredwell In 2001, the firm completed fundraising for its first and only private equity fund
Private equity fund
A private equity fund is a collective investment scheme used for making investments in various equity securities according to one of the investment strategies associated with private equity....
with approximately $1.4 billion of investor commitments.
Collins & Aikman
In 2005, it was reported that Stockman handed control of the fund, Heartland Industrial Partners, over to his partners following his resignation as chairman of Collins & AikmanCollins & Aikman
Collins & Aikman Corporation was a manufacturer of cockpit modules and automotive floor and acoustic systems and a supplier of instrument panels, automotive fabric, plastic based trim and convertible top systems...
, which was a major investment for the fund that ended in bankruptcy.
On March 26, 2007, federal prosecutors in Manhattan indicted Stockman in "a scheme ... to defraud [Collins & Aikman]'s investors, banks and creditors by manipulating C&A's reported revenues and earnings." At the same time, the Securities and Exchange Commission
United States Securities and Exchange Commission
The U.S. Securities and Exchange Commission is a federal agency which holds primary responsibility for enforcing the federal securities laws and regulating the securities industry, the nation's stock and options exchanges, and other electronic securities markets in the United States...
brought civil charges against Stockman related to actions he took while CEO of Collins & Aikman. Stockman suffered a personal financial loss, estimated at $13 million, along with losses suffered by as many as 15,000 Collins & Aikman employees worldwide. Stockman said in a statement posted on his law firm's Web site that the company's collapse was the consequence of an industry melt-down, not fraud. In August 2008, a trial date was set but on January 9, 2009, the U.S. Attorney's Office announced that it did not intend to prosecute Stockman in this case.
Other investments in the Heartland portfolio included auto parts suppliers Metaldyne and TriMas as well as Springs Industries, a manufacturer of home furnishings.
External links
- Heartland Industrial Partners (company website)