AIP, or American Industrial Partners, provides investment advice to private investment funds. AIP aims to achieve long-term capital appreciation and generate significant risk-adjusted returns by acquiring control positions in underperforming industrial companies. AIP also invests in secured and unsecured loans, notes, bonds, and debt, equity, and equity-related securities of such industrial companies.
Fee Structure
AIP does not directly manage investments for individual investors. AIP manages investments for pooled investment vehicles (funds). These funds charge a management fee of 2% on committed capital until a successor fund begins paying a management fee. After that, the fee is 2% on remaining investor capital contribution for investments until a successor fund begins paying a management fee or the fund's term ends. Then, it's 1.5% on remaining investor capital contribution for investments until the fund's term ends. AIP affiliates also charge a 20% performance-based fee on realized gains net of expenses and write-downs.