GenNx360 Capital Partners' Matt Guenther Chairs Capital Roundtable's Conference on Private Equity Investing In Niche Manufacturing Companies
Portfolio Company News - March 28, 2014
As the “Made-in-America” Trend Picks Up Speed,
Operations Holds the Key to New Opportunities
On March 27, Matt Guenther, a partner at GenNx360 Capital Partners, a New York-based operationally focused PE firm driving value creation in industrial B2B companies, chaired Capital Roundtable’s full-day conference on “Private Equity Investing in Niche Manufacturing Companies”. The conference was held in midtown Manhattan.
The day’s agenda included topics from best practices for PE firms to improve operations in niche manufacturing portfolio companies to the most important things a PE firm has to get right when exiting a niche manufacturing investment.
Matt is a firm believer that operations is the key lever to opening new opportunities in private equity investing in manufacturing companies. “At GenNx360 Capital Partners, operations is the core of our strategy. Several of my partners used to be front-line operating executives at General Electric. They led diverse industrial businesses, generating billions in operating profits. Collectively, we target investments in industrial sectors where we have operational and managerial experience including specialty chemicals, industrial machinery and components, energy, transportation and logistics, agriculture, and aerospace and defense.” said Matt.
Since 2006 when GenNx360 was founded, niche manufacturing has been revolutionized. The most obvious example is that ten years ago the big new trend was off-shoring. Now the tide is coming back, and the big new trend is “re-shoring.”
There are many reasons why this is a foregone conclusion --
- Low domestic energy costs are making it more economical for manufacturers of chemicals, plastics, machinery, and transportation equipment to produce here.
- Many manufacturers are rethinking the sense of having their R&D teams here while their manufacturing workers are far away.
- The bull run in commodity prices has ended.
- The currency gap between the dollar and yuan is narrowing.
- The transportation expenses of overseas production are at elevated levels.
- Having a localized supply chain reduces the risks of an overseas natural disaster, port closure, or trade dispute.
- Most tellingly, wages in China are rising so rapidly that China’s manufacturing cost advantage over the U.S. is projected to shrink to just 5% by 2015.
See more about what Matt had to say about the trend toward “re-shoring” in manufacturing companies.
GenNx360_PE Investing in Middle Market Manufacturing Cos
About Matt Guenther
Matt joined GenNx360 in 2007, bringing extensive investment experience to the firm’s Transaction and Analytical Team. Prior to joining GenNx360, Matt was at Walden Capital Partners working on both new investments and portfolio management. Prior to Walden, Matt was at KPMG Consulting in their strategic/financial planning and analysis department. Matt began his career at AT&T where he held various sales and finance positions. Matt earned his BA in History from Union College and MBA in Finance and International Business from Columbia Business School.
About GenNx360 Capital Partners
GenNx360 Capital Partners is a private equity firm focused on investing in industrial and business services companies in the middle market. It applies years of Fortune 50 operational and leadership experience to these investments to help drive growth and value creation. The firm primarily focuses on opportunities in the industrial machinery and components, oil and gas, logistics and supply chain management, agricultural, specialty chemicals, and aerospace sectors. GenNx360 was founded in 2006 and is headquartered in New York City, with additional offices in Seattle and Boston.
For more information about GenNx360, please visit: www.gennx360.com
For media inquiries about this press release, please contact:
GenNx360 Capital Partners
Carmen Rojas, Investor Relations Manager
Tel: +1 212.257.6772