Appian Way Capital Partners

Overview

Appian Way Capital Partners is a Dallas-based private equity firm specializing in investments in the manufacturing sector. The firm focuses on collaborating closely with management teams to drive significant long-term growth. With over 50 years of combined experience, Appian Way has been involved in more than 20 acquisitions and growth capital investments, deploying over $200 million in capital. Their team includes directors of large private equity-backed companies, CEOs of middle-market firms, and CFOs of companies with revenues up to $150 million. Appian Way emphasizes senior-level attention, ensuring that management teams work directly with their principals throughout the investment's life cycle. They maintain a focused portfolio, typically managing only 5-6 companies at a time, allowing for meaningful time and resources to be dedicated to each. The firm seeks to invest in companies with strong growth potential, preferring to add value through operational improvements rather than merely cutting costs. Their investment approach is patient and scalable, tailoring capital structures to fit the business's needs and allowing for significant scaling over time. Appian Way typically invests between $10 million and $50 million, with the capacity to increase investments as needed. They prefer to take majority or meaningful minority stakes in companies, providing an attractive alternative to traditional private equity funds or competitors. Their investment criteria include targeting companies with revenues between $10 million and $100 million, EBITDA between $2 million and $20 million, strong margins, and diverse customer and vendor bases. Industries of interest encompass complex manufacturing, value-add distribution, industrial products and services, food & beverage, and aerospace & defense. Appian Way's patient capital approach allows them to stay invested in a business as long as necessary, providing flexibility and support for growth initiatives. Their focus on low leverage ensures more cash is available for growth rather than debt service, protecting the equity positions of business owners and management teams. This approach offers a compelling alternative to selling to traditional private equity funds or competitors, emphasizing collaboration and long-term value creation.

Investment Focus

• Revenue: $10-100+ million
• EBITDA: $2-20 million
• US-based
• Strong margins
• Strong free cash flow / modest CapEx
• Diverse customer and vendor base
• Non-cyclical
• Defensive niche / high barriers to entry
• Highly fractured industry with consolidation potential