Heartland Industrial Partners is a

private equity In the field of finance, the term private equity (PE) refers to investment funds, usually limited partnerships (LP), which buy and restructure financially weak companies that produce goods and provide services. A private-equity fund is both a ty ...

firm focused on industry consolidation and

growth capital Growth capital (also called expansion capital and growth equity) is a type of private equity investment, usually a minority investment, in relatively mature companies that are looking for capital to expand or restructure operations, enter new mark ...

investments in middle-market industrial companies. The firm, which is based in

Stamford, Connecticut Stamford () is a city in the U.S. state of Connecticut, outside of Manhattan. It is Connecticut's second-most populous city, behind Bridgeport. With a population of 135,470, Stamford passed Hartford and New Haven in population as of the 2020 ...

, was founded in 1999 and is no longer actively investing.

History

The firm was founded in 1999 by former Reagan budget director

David Stockman David Alan Stockman (born November 10, 1946) is an American politician and former businessman who was a Republican U.S. Representative from the state of Michigan (1977–1981) and the Director of the Office of Management and Budget (1981–1985) ...

, Timothy Leuliette and Daniel Tredwell "Collins & Aikman seeks to emerge from bankruptcy," ''

Bloomberg News Bloomberg News (originally Bloomberg Business News) is an international news agency headquartered in New York City and a division of Bloomberg L.P. Content produced by Bloomberg News is disseminated through Bloomberg Terminals, Bloomberg Televi ...

'' article by Jeff Bennett, appearing in '' The Advocate'' of Stamford and (identical version, perhaps with changes by the local editor in the common business section for both papers) in the '' Greenwich Time'' on September 5, 2006, page A7, '' The Advocate'' In 2001, the firm completed fundraising for its first and only

private equity fund A private equity fund (abbreviated as PE fund) is a collective investment scheme used for making investments in various equity (and to a lesser extent debt) 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 & Aikman Collins & Aikman Corporation was an automotive 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. The Company's operat ...

, which was a major investment for the fund that ended in bankruptcy. On March 26, 2007, federal prosecutors in

Manhattan Manhattan (), known regionally as the City, is the most densely populated and geographically smallest of the five boroughs of New York City. The borough is also coextensive with New York County, one of the original counties of the U.S. state ...

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 The U.S. Securities and Exchange Commission (SEC) is an independent agency of the United States federal government, created in the aftermath of the Wall Street Crash of 1929. The primary purpose of the SEC is to enforce the law against market ...

brought civil charges against Stockman related to actions he took while

CEO A chief executive officer (CEO), also known as a central executive officer (CEO), chief administrator officer (CAO) or just chief executive (CE), is one of a number of corporate executives charged with the management of an organization especially ...

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 Masco Corporation is an American manufacturer of products for the home improvement and new home construction markets. Comprising more than 20 companies, the Masco conglomerate operates nearly 60 manufacturing facilities in the United States and ...

and

TriMas Masco Corporation is an American manufacturer of products for the home improvement and new home construction markets. Comprising more than 20 companies, the Masco conglomerate operates nearly 60 manufacturing facilities in the United States and ...

as well as Springs Industries,SPRINGS INDUSTRIES, A MAKER OF SHEETS, TO GO PRIVATE

New York Times ''The New York Times'' (''the Times'', ''NYT'', or the Gray Lady) is a daily newspaper based in New York City with a worldwide readership reported in 2020 to comprise a declining 840,000 paid print subscribers, and a growing 6 million paid d ...

, April 26, 2001 a manufacturer of home furnishings.

References

Heartland Industrial Partners To Buy Simpson Industries
Autoparts Report October 2, 2000,
Producing Gold In The Rust Belt
Automotive Manufacturing & Production, March, 2001

External links

Heartland Industrial Partners
(company website) {{private equity firms Private equity firms of the United States Financial services companies established in 1999 Companies based in New York City 1999 establishments in Connecticut