Back

Industry Sectors

HomeApproachIndustry Sectors

Decades of Industry Experience

While we evaluate opportunities across a variety of different industrial, service, business-to-business and consumer industries, we have deep understanding and experience in a core set of sectors we believe exhibit attractive long-term investment characteristics.

Energy

80+ years of experience
Our Views on Energy

We believe that the energy sector is and will continue to be a high value and growing sector of the global economy. Our ongoing ownership of Sprague will provide us with a platform from which to identify other attractive infrastructural opportunities within the industry.

Our thesis for investing in the energy sector is based upon the following beliefs:

  • North America is undergoing an energy renaissance
  • Domestic development, driven by new extraction technologies, will continue to expand notwithstanding the current round of pricing volatility
  • The U.S. has transitioned from being a large importer of fuels to a new exporting economy, necessitating substantial re-investment in new and reconfigured conveyance (pipeline) and storage assets around the country
  • Along with this new capacity, much of the underlying energy infrastructure in the country is aging
  • Concerns regarding the safe operation of these assets will require increasing investment in monitoring and maintenance, likely enforced through tighter regulation
  • We believe there will be a number of mid-stream services which will make for attractive businesses in this environment

Water

50+ years of experience

The fact that the water sector is enormous and destined to continue growing over time have been central factors in our choice to make it an ongoing investment focus.

However, a very large percentage of the market remains in the hands of the public sector where the costs of operation are higher than the fees collected and the economics are subsidized by government tax levies.

  • While we believe that water pricing will gradually increase to better reflect the true cost of providing it, this process will take time and involve some trial and error.
  • To date, most of the “pioneers” in North American utility privatization have not fared well.

An equally large quotient of the market includes low margin, globally consolidated engineering firms, or fragmented local contracting companies.

Accordingly, we tend to focus on a sub-set of niche opportunities that we believe offer more attractive, market-based economic returns in the current environment, including:

  • Residential and light commercial water treatment (Kinetico’s principal area of focus)
  • Municipal capital equipment and after sales services (Parkson’s principal area of focus)
  • Certain segments of the industrial water treatment market (food and beverage, chemical processing, power generation)
  • Commercial irrigation
  • Niche system management services (municipal and industrial asset mapping, maintenance, and water testing)

We also simultaneously monitor the development of new technologies, services, and business models for their potential to open new avenues of participation.

Healthcare Technology

30+ years of experience
Our Views on Healthcare Technology

Despite pressures to rein in increasing spending, we believe that the healthcare technology sector will continue to be a large and growing area of the global economy, driven by aging populations, growth in the global middle class, and expectations for an improving quality of life and care.

We believe that the most appealing areas of the healthcare sector for AJI will be those underlying product and service businesses supporting health care discovery and delivery – areas which we call the “infrastructural” elements of the industry. These areas have some shared characteristics, including:

  • An emphasis on process knowledge and innovation over discrete product technology
  • Not driven by intellectual property strategies rooted in new and risky science
  • Business-to-business in nature, with purchasing decisions largely grounded in quantifiable economics and demonstrable performance
  • Reasonable distance and separation from the patient, creating insulation from changing reimbursement behaviors
  • Higher defensibility and durability based on track record, relationship development, and accumulated experience

Housing

20+ years of experience

Let's build something together.

We would love to hear your company’s story and share our own.

Contact Us