IR2 Holdings, LLC (“IR2”) announced its formal launch of a specialized joint venture between Alan Kestenbaum, Gaurav Mehta and funds and accounts managed by Oaktree Capital Management, L.P. (“Oaktree”), leveraging a unique collection of expertise, resources, and track record for investments across the metals, mining and natural resources sectors.
The U.S. based platform will focus on investing in all parts of the capital structure, and along the broader industrial value chain, from mining, smelting, fabrication and value-added industrial products across a wide range of diversified end markets, by partnering with owners, managers, and investors to leverage its world class operational and corporate expertise. IR2 is evaluating opportunities globally, with a primary focus on the Americas and Europe.
Our philosophy is to operate assets and maximize value for all stakeholders through a differentiated approach towards acquisitions, asset optimizations, operational enhancements, capital markets and restructurings, as well as an active and collaborative partnership with key constituents.
This platform has a long-term investment horizon with optimal investment size of $100 million, and up to $1 billion (though smaller and larger transactions will be considered), offering management teams with a patient and supportive partner who can work alongside them.
Alan Kestenbaum commented, “We are thrilled to launch the IR2 platform alongside our partner, Oaktree, and feel the timing is ripe to be in the market for capital deployment. IR2 stands for Industrial Revolution 2. Consistent with the name, there are two themes we are going to pursue. Firstly, everything that is used and how it is produced will be done differently in the future as new environmental goals are established. With this platform we intend to invest in businesses that are driving these new sources and ways of producing industrial inputs to meet new standards in cost efficient ways. Additionally, with the weakening global macroeconomic backdrop on the heels of a global energy crisis, staggering inflation, emerging ESG strategies, liquidity scarcity, and growing risk of a prolonged period of economic slowdown, companies are reconsidering their operational and capital raising strategies. The IR2 platform is well positioned to take advantage of this unique set of events and has the flexibility to pursue a wide range of transactions, including capital investments, lending and outright acquisitions.” Mr. Kestenbaum continued, “I am excited to have Gaurav Mehta as my partner at IR2. Gaurav and I have worked together in the past at Globe Specialty Metals/Ferroglobe and witnessing his ability to grow and turnaround businesses will be critical for value creation.”
Brian Laibow, Managing Director and Co-Head of North America for Oaktree’s Global Opportunities strategy, commented, “Oaktree is excited about this partnership with Alan and Gaurav, which stands to benefit from a number of emerging trends creating unique opportunities in the sector, such as the energy transition and a shift to local value chains. We believe Oaktree’s global platform will provide a strong foundation for the business moving forward.”
Alan Kestenbaum
Alan Kestenbaum has served as Stelco’s Executive Chairman and as Stelco’s Chief Executive Officer since September 2017, following its acquisition out of bankruptcy. He is also a minority owner of the Atlanta Falcons. Mr. Kestenbaum has over 30 years of experience in the metals and mining production, trading, distribution and finance business. Mr. Kestenbaum previously founded Bedrock Industries in partnership with Lindsay Goldberg. He was also the founder and former Executive Chairman of Globe Specialty Metals and its successor Ferroglobe PLC until 2016. Prior to forming Globe Specialty Metals, Mr. Kestenbaum founded Marco International, a leading international metals trader and investor, and led its expansion globally. He has extensive operating experience in the natural resources sectors as well as a successful track record in turnaround and restructurings.
Gaurav Mehta
Gaurav Mehta has held several international executive management roles at Ferroglobe PLC, serving as the Transformation Director and Executive Vice President of Corporate Strategy, Investor Relations, Information Technology and M&A, and was recently appointed as President of North America. His unique profile, versatility and expertise across finance, operations and strategy have enabled him to be a critical contributor to the executive management team through various phases of the company, and specifically when overseeing the day-to-day turnaround of Ferroglobe in his capacity as Transformation Director. Prior to Ferroglobe and its predecessor, Globe Specialty Metals, Mr. Mehta had ten years of investment banking experience covering global industrials, with a focus on metals and mining clients, executing over $25 billion in strategic advisory and capital raising transactions.